Analyst Downgrades: Cerner Corporation, Devon Energy Corp, and Sunedison Inc

Analysts downwardly revised their ratings and price targets on Cerner Corporation (NASDAQ:CERN), Devon Energy Corp (NYSE:DVN), and Sunedison Inc (NYSE:SUNE)

by Josh Selway

Published on Feb 17, 2016 at 9:27 AM
Updated on Feb 17, 2016 at 9:30 AM

Analysts are weighing in on healthcare IT provider Cerner Corporation (NASDAQ:CERN), energy concern Devon Energy Corp (NYSE:DVN), and solar energy stock Sunedison Inc (NYSE:SUNE). Here's a quick roundup of today's bearish brokerage notes on CERN, DVN, and SUNE.

  • CERN is bracing for an 11.7% tumble out of the gate -- and a trip to annual-low territory -- after the company lowered its full-year outlook, citing weaker-than-expected bookings during the most recent quarter. Based on last night's close at $55.46, the stock has already lost 7.8% in 2016, with recent breakout attempts stymied by its descending 20- and 50-day moving averages. In the meantime, a flurry of price-target cuts have come down the pike, and Barclays set the bar the lowest at $55. If Cerner Corporation doesn't turn things around on the charts, more bearish attention could be in store. Ninety-one percent of covering brokerage firms rate the IT provider a "buy" or "strong buy," while none deem it a "sell." 
  • After DVN announced substantial spending and job cuts and a lowered dividend during its quarterly earnings report Tuesday night, UBS lowered its price target on the stock to $19 from $24, maintaining its "sell" opinion. Devon Energy Corp hit a 13-year low of $19.62 just last week, and has shed over half its value since November to trade at $21.26. Option traders appear to be on the right side of this price action. DVN's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 6.58 is at an annual high. 
  • SUNE is actually pointed 6.3% higher in pre-market trade, even though BofA-Merrill Lynch downgraded the shares to "neutral" from "buy," and trimmed its price target to $2.50. Considering the stock's 14-day Relative Strength Index (RSI) of 27 is in oversold territory, though, a near-term bounce may be in the cards. Meanwhile, as Sunedison Inc continues to knock out new decade-plus lows, option traders have remained optimistic. This rosy outlook is shared by the analyst crowd. Out of 15 brokerage firms with coverage on the solar stock, only one recommends selling it. The shares settled at $1.62 on Tuesday. This time last year, they traded at $22.02. 
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