Analyst Update: Fossil Group, Microsoft, TerraForm Power

Analysts are weighing in today on accessories designer Fossil Group Inc (NASDAQ:FOSL), tech giant Microsoft Corporation (NASDAQ:MSFT), and solar energy interest TerraForm Power Inc (NASDAQ:TERP). Here's a quick roundup of today's brokerage notes on FOSL, MSFT, and TERP.

• FOSL is trading 3.5% lower at $36.46 today, after Goldman Sachs downgraded the stock to "sell" from "neutral," and cut its price target to $26 from $38. In a note to clients, Goldman cited increasing competition from wearables, such as the Apple Watch, as one likely headwind for watch giant FOSL. Fossil Group Inc has already given up 67% of its value so far this year, exacerbated by a bearish post-earnings gap in November. Options traders, however, have been favoring calls -- on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has a 10-day call/put volume ratio of 4.15, which ranks in the 88th percentile of all readings taken in the past year.

• MSFT is down 1.2% at $55.04, shortly after announcing it will acquire data analytics company Metanautix. Microsoft Corporation got a big nod from Goldman Sachs earlier in the day; the brokerage upgraded MSFT to "neutral," removed the stock from its "Americas Sell" list, and raised its price target to $57 from $45. An analyst at the firm told clients, "we were wrong," noting MSFT's potential to move higher as it transitions more of its business to the cloud. The stock has climbed nearly 19% in 2015, and options traders continue to place bullish bets. At the ISE, CBOE, and PHLX, Microsoft holds a 50-day call/put volume ratio of 3.12 -- one percentage point shy of an annual high.

• TERP is trading 3.8% higher at $12.86 today as solar energy stocks continue their rally, and the stock is also capitalizing on a price-target hike to $9 from $6 at UBS. TerraForm Power Inc has been clawing its way back from an all-time low at $6.73 in late November, but still sits on a 58.4% year-to-date loss. Options traders are still looking favorably on the stock, though. TERP has a Schaeffer's put/call open interest ratio (SOIR) of 0.53, which ranks higher than only 18% of readings in the past year -- indicated that near-term traders are favoring calls over puts by an unusually wide margin.