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)

Mar 11, 2016 at 10:06 AM
facebook X logo linkedin


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.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI