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Analyst Update: Boeing Co, and Tesla Motors Inc

Analysts adjusted their ratings and price targets on The Advisory Board Company (ABCO), Boeing Co (BA), and Tesla Motors Inc (TSLA)

Feb 24, 2016 at 2:33 PM
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Analysts are weighing in on business support specialist The Advisory Board Company (NASDAQ:ABCO), aerospace issue Boeing Co (NYSE:BA), and electric automaker Tesla Motors Inc (NASDAQ:TSLA). Here's a quick roundup of today's brokerage notes on ABCO, BA, and TSLA.

  • ABCO has lost nearly one-quarter of its value to trade at $27.37, and earlier hit a five-year low of $18.87, on the heels a poorly received earnings report that included a disappointing full-year revenue outlook. Wall Street is panning the news, with at least eight analysts weighing in bearishly on the stock. Among them are Stifel, Craig-Hallum, and Baird, which each lowered their ratings to the equivalent of a "hold" -- with the latter pair cutting their respective price targets to $36 and $40. Elaborating on the firm's decision, a Stifel analyst noted The Advisory Board Company's "core business growth is slowing from mid-teens to mid-single digits very quickly." Additional bearish notes could come down the pike, too. After all, 17 of 19 analysts consider ABCO worthy of a "buy" or better endorsement, versus two "holds" and not a single "sell" opinion.
  • BA was hit with a price-target cut to $100 from $102 at Goldman Sachs, citing declining fuel prices could prompt the company to delay upgrading its fleet. Additionally, the Federal Aviation Administration (FAA) recommended a fix for the company's 787 Dreamliner. As such, the stock is down over 2% at $114.47 -- just above its two-year low of $102.10 from earlier this month -- and is the leading loser on the Dow. If option traders have their druthers, Boeing Co shares will continue to fly south. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a put/call volume ratio of 2.29. Not only does this ratio mean long puts have more than doubled long calls over the last two weeks, it also ranks in the bearishly skewed 96th percentile of its annual range.
  • Berenberg cut its price target on TSLA to $150 from $165. On top of that, after two years ranked as Consumer Reports' best overall carthe Model S lost the coveted designation due to quality control issues. Nevertheless, Tesla Motors Inc is up 0.3% at $177.67, and has rebounded nicely since hitting a two-year low of $141.05 on Feb. 9, helped by a bounce off its 200-week moving average. Option traders aren't convinced TSLA has righted its ship, though. The stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.24 sits just 1 percentage point from a 12-month peak. Likewise, 30% of TSLA's float is sold short, and would take almost eight sessions to buy back, at its average daily volumes.
For other stocks in analysts' crosshairs, read Analyst Upgrades: First Solar, Inc., Dick's Sport Goods Inc, and Mellanox Technologies, Ltd. and Analyst Downgrades: Macy's, Inc., Fitbit Inc, and JPMorgan Chase & Co.
 

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