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Analyst Update: Sunedison, Rackspace Hosting, Transocean

Analysts adjusted their ratings and price targets on Sunedison Semiconductor Ltd (SEMI), Rackspace Hosting, Inc. (RAX), and Transocean LTD (RIG)

Feb 17, 2016 at 3:15 PM
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Analysts are weighing in on chipmaker Sunedison Semiconductor Ltd (NASDAQ:SEMI), tech stock Rackspace Hosting, Inc. (NYSE:RAX), and oil interest Transocean LTD (NYSE:RIG). Here's a quick roundup of today's brokerage notes on SEMI, RAX, and RIG.

  • SEMI is up 8.9% at $3.78, thanks to a bullish nod from Goldman Sachs. The brokerage removed Sunedison Semiconductor Ltd from its "Americas Conviction Sell" list, raising its rating on the stock to "neutral" from "sell," while also cutting its price target to $3.80 from $5.00. The equity hit a record low of $3.24 yesterday, and has underperformed the S&P 500 Index (SPX) by more than 56 percentage points over the last three months. Plus, even with today's boost, SEMI is more than 50% lower year-to-date. Short sellers have been piling on -- SEMI's short interest accounts for more than seven days of trading, at the stock's typical pace.
  • After issuing a disappointing 2016 forecast, Pacific Crest, Barclays, Credit Suisse, and Stifel all downgraded RAX, while no fewer than 10 brokerage firms cut their price targets on the stock. After initially turning lower -- and hitting a five-year low of $15.05 -- RAX was last seen up 1.7% at $18.47. Rackspace Hosting, Inc. option traders have been eyeing a rebound -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 2.03 is higher than 87% of all readings from the past year. 
  • KLR Group cut its price target on RIG to $15 from $19 ahead of next week's fourth-quarter earnings report. Transocean LTD is 6.4% higher at $9.22 today, as energy stocks react to crude oil's an impressive rebound. The shares touched a record low of $8.23 last week, and analysts seem to be expecting more downside -- the stock currently has nine "hold" and nine "sell" or worse ratings, compared to a single "strong buy." Likewise, the near-record level of RIG's available float currently sold short accounts for almost two full weeks of trading, at the equity's average daily volume.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Boyd Gaming Corporation, Campbell Soup Company, and Fossil Group Inc and Analyst Downgrades: Cerner Corporation, Devon Energy Corp, and Sunedison Inc.
 

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