Analyst Update: Priceline, Republic Airways, Solaredge Tech

Analysts adjusted their ratings on Priceline Group Inc (PCLN), Republic Airways Holdings Inc. (RJET), and Solaredge Technologies Inc (SEDG)

Jan 5, 2016 at 2:07 PM
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Analysts are weighing in today on Web-based travel portal Priceline Group Inc (NASDAQ:PCLN), airline Republic Airways Holdings Inc. (NASDAQ:RJET), and alternative energy issue Solaredge Technologies Inc (NASDAQ:SEDG). Here's a quick roundup of today's brokerage notes on PCLN, RJET, and SEDG.

  • PCLN is succumbing to broad-market headwinds this afternoon, down 3.3% at $1,204.69. Making matters worse, Raymond James cut its rating on the stock to "outperform" from "strong buy," and reduced its price target to $1,350 from $1,560. Today's downtrend is more of the same for Priceline Group Inc, which has shed over 18% since hitting an all-time high of $1,476.52 in early November. What's more, the stock is on pace for a second straight finish beneath its 50-day moving average -- which hasn't happened since mid-2015. Amid these technical woes, option traders have been placing bearish bets at an accelerated rate, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Across these exchanges, PCLN has amassed a 10-day put/call volume ratio of 1.02, ranking in the high 92nd percentile of its annual range.

  • RJET has hit severe turbulence, down 14.2% at $3.11. Today's sell-off was sparked by a downgrade to "hold" from "buy" at Deutsche Bank, which likewise halved its price target to $4. In a note, the brokerage firm wrote, "Republic's negotiations with its major airline partners American, Delta and United about the future 'size and shape' of the company drag on into 2016." Longer term, Republic Airways Holdings Inc. has been a huge dud, underperforming the broader S&P 500 Index (SPX) by nearly 40 percentage points over the prior three months. While short interest has declined in recent reporting periods, over one-tenth of RJET's float is still shorted, representing nearly a week's worth of activity, at typical volumes.

  • Goldman Sachs has weighed in on several solar stocks today, and SEDG is no exception. Specifically, the brokerage added the shares to its "Americas Conviction Buy" list and upped its target price by $9 to $41, once again waxing optimistic on the energy name. As a result, Solaredge Technologies Inc has shot 4.6% higher to trade at $29.28, continuing to bounce back from its November lows. Taking a step back, the stock's bullish bandwagon is quite crowded. SEDG's 50-day call/put volume ratio sits at a top-heavy 11.00, while eight of nine covering analysts have handed out "buy" or better opinions.
For other stocks in analysts' crosshairs, read Analyst Upgrades: First Solar, Inc., Halliburton Company, and Smith & Wesson Holding Corp and Analyst Downgrades: Chesapeake Energy Corporation, Sunrun Inc, and SunPower Corporation.

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