Analyst Downgrades: Potash Corp of Saskatchewan, AK Steel

Analysts downwardly revised their ratings and price targets on Potash Corporation of Saskatchewan (USA) (POT), AK Steel Holding Corporation (AKS), and Sunrun Inc (RUN)

by Kirra Fedyszyn

Published on Mar 11, 2016 at 10:06 AM
Updated on Jul 9, 2020 at 1:21 PM

Analysts are weighing in on fertilizer producer Potash Corporation of Saskatchewan (USA) (NYSE:POT), steel stock AK Steel Holding Corporation (NYSE:AKS), and solar energy issue Sunrun Inc (NASDAQ:RUN). Here's a quick roundup of today's bearish brokerage notes on POT, AKS, and RUN.

  • POT is up 1.2% at $18.43, despite a downgrade to "underweight" at Atlantic Equities. The shares are on the mend after hitting an eight-year low of $14.64 in late January, and have now brought their year-to-date lead to 7.5%, toppling their 120-day moving average earlier this week for the first time in over a year. Still, 67% of analysts rate Potash Corporation of Saskatchewan (USA) a "hold" or worse, and option traders don't seem to be buying the stock's rebound just yet, either. POT's 50-day put/call volume ratio on the International Securities Exchange (ISE). Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is still higher than 76% of the past year's readings, at 0.55.
  • Credit Suisse began coverage on AKS with a bearish "underperform" rating and $2 price target, despite the steel sector's recent rally, which has AKS ahead 78.8% in 2016. AK Steel Holding Corporation is 3.6% lower at $4.00 today, but has more than doubled in value since its January all-time low of $1.63, and recently blew through its 50-week moving average for the first time in over a year. But while analysts are still rather pessimistic, near-term option traders may be turning a bullish eye on AKS. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.45 is lower than 98% of all readings in the last year, showing a near call-skewed extreme among options expiring in the next three months.
  • After last night's earnings report and lackluster growth forecast, Credit Suisse cut its price target on RUN to $21 from $35 -- still a 243% premium over Sunrun Inc's current value. The stock has plummeted 14.4% to $6.12 today, and while a recent crop of short sellers may be cheering, option traders have been significantly call-heavy lately. At the ISE, CBOE, and PHLX, traders have bought to open 9.23 RUN calls for each put during the past two weeks.
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