Analyst Downgrades: Tesla Motors Inc, Yum! Brands, Inc., and Nu Skin Enterprises, Inc.

Analysts downwardly revised their ratings on Tesla Motors Inc (NASDAQ:TSLA), Yum! Brands, Inc. (NYSE:YUM), and Nu Skin Enterprises, Inc. (NYSE:NUS)

by Karee Venema

Published on Oct 7, 2015 at 9:59 AM
Updated on Oct 7, 2015 at 10:01 AM

Analysts are weighing in on electric car concern Tesla Motors Inc (NASDAQ:TSLA), fast-food specialist Yum! Brands, Inc. (NYSE:YUM), and personal care purveyor Nu Skin Enterprises, Inc. (NYSE:NUS). Here's a quick roundup of today's bearish brokerage notes on TSLA, YUM, and NUS.

  • Although TSLA has bounced over 20% since hitting its most recent low of $195 in late August -- with the shares last seen at $234.21 -- analysts continue to issue bearish brokerage notes toward the stock. Today, for instance, Baird lowered its outlook on the shares to "neutral" and its price target to $282 from $335, saying it sees "limited visibility to positive catalysts until the release of the Model III prototype." This skepticism is seen elsewhere on the Street, as well, with more than one-quarter of Tesla Motors Inc's float sold short -- or 7.3 times the average daily trading volume. Should the shares resume their recent run higher, a round of upgrades and/or short covering could create tailwinds.

  • YUM plunged 18.9% out of the gate to $67.68 -- erasing its year-to-date gains -- after the company's disappointing earnings was met with bearish backlash from the brokerage bunch. J.P. Morgan Securities, for instance, lowered its price target to $87 from $103, while Stifel cut its target price by $10 to $100. Should the shares extend today's negative price action, more bearish brokerage notes could be on the horizon. Currently, eight out of 17 analysts maintain a "strong buy" rating toward Yum! Brands, Inc., with not a single "sell" to be found. Plus, the average 12-month price target of $95.37 sits in territory not charted since late May.

  • NUS is down 20.8% at the open to churn near $36.89 -- and earlier touched a nearly three-year low of $36.43 -- thanks to the firm's lower-than-expected third-quarter sales forecast. Adding to the bearish bias is a round of negative analyst notes, including a downgrade to "sell" from "hold" at Stifel and a price-target cut to $40 from $44 at BofA-Merrill Lynch. Heading into today's trading, the stock was sitting on a 6.6% year-to-date lead. Nevertheless, option traders have been bracing for a pullback, per Nu Skin Enterprises, Inc.'s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 9.38 -- in the 92nd percentile of its annual range. In other words, puts have been bought to open over calls at a faster clip just 8% of the time within the past year.
Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
Disney Stock Gets Bruised After Analyst Downgrade
Guggenheim downgraded DIS to "neutral" from "buy," and cut its price target to $100
CE Stock Heading into Bullish Month
Celanese stock is coming off a free fall from its all-time-high in late 2019
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.