Analyst Downgrades: Tesla Motors, SolarCity, and Facebook

Analysts downwardly revised their ratings on Tesla Motors Inc (NASDAQ:TSLA), SolarCity Corp (NASDAQ:SCTY), and Facebook Inc (NASDAQ:FB)

by Josh Selway

Published on Oct 30, 2015 at 9:17 AM
Updated on Jul 2, 2020 at 3:13 PM

Analysts are weighing in on Elon Musk's Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY), as well as social media giant Facebook Inc (NASDAQ:FB). Here's a quick roundup of today's bearish brokerage notes on TSLA, SCTY, and FB.

  • TSLA is sitting in the red ahead of the bell, down 1.2% after UBS sliced its price target to $190 from $210. The stock has already been struggling recently, underperforming the S&P 500 Index (SPX) by more than 20 percentage points in the past month alone, settling Thursday at $211.63. Short sellers don't mind, though. Short interest on Tesla Motors Inc has been elevated for some time, currently representing nearly 27% of its float -- or 5.6 days' worth of buying power, at typical daily volumes. Looking ahead, the automaker is scheduled to report earnings next Tuesday night.

  • SCTY is getting battered in electronic trading, facing a potential 18.4% drop, following the firm's third-quarter earnings miss and disappointing fourth-quarter outlook. It's already been an ugly year for the stock, which has dropped almost 29% to land at $38.07. To make matters worse, analysts were quick to chime in with bearish notes. Goldman Sachs and Baird each lowered their opinions to "neutral," while the latter brokerage firm was one of at least seven to reduce its price target on SolarCity Corp. More downgrades are possible, too, as 92% of analysts say the stock is a "buy" or better -- with not a single "sell" rating in sight. Elsewhere, option bears may be ready to cash in today

  • A day after hitting another all-time high of $105.12, FB is set to open lower, after Jyske Bank cut its opinion to "sell" from "buy." Facebook Inc has been storming up the charts in recent weeks, adding close to 17% in October to trade at $104.88. Even without today's downgrade, though, the security may have been due for a setback. FB's 14-day Relative Strength Index (RSI) sits in overbought territory at 75. 
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