Analyst Downgrades: Restoration Hardware Holdings Inc, Dave & Buster's Entertainment, Inc., and TerraForm Power Inc

Analysts downwardly revised their ratings and price targets on Restoration Hardware Holdings Inc (RH), Dave & Buster's Entertainment, Inc. (PLAY), and TerraForm Power Inc (TERP)

Mar 30, 2016 at 10:09 AM
facebook twitter linkedin

Analysts are weighing in on retail stock Restoration Hardware Holdings Inc (NYSE:RH), entertainment issue Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY), and Sunedison Inc (NYSE:SUNE) yieldco TerraForm Power Inc (NASDAQ:TERP). Here's a quick roundup of today's bearish brokerage notes on RH, PLAY, and TERP.

  • RH is up 5.1% at $41, shaking off lower-than-predicted fourth-quarter earnings and price-target cuts from no fewer than six analysts. Among those chiming in was Baird, which lowered its target to $42 -- just above Restoration Hardware Holdings Inc's current value. The stock shed 67% between its Nov. 4 all-time high of $106.49 and its two-year low of $35.03, hit less than two weeks ago. And while brokerage firms have been abandoning their bullish outlooks on RH, traders don't appear to be expecting a big bounce back in the near future, either -- short interest accounts for nearly one-fourth of the equity's total available float.

  • After reporting fourth-quarter earnings that beat expectations and providing an upbeat full-year forecast, PLAY is 0.8% higher at $39.54. Also boosting the shares is a price-target bump to $50 from $46 at Stifel, which is overshadowing Piper Jaffray's downwardly revised price target to $49 from $60. The stock has been on the mend since taking a sharp dive in early February, and, more recently, has been enjoying support from its 80-day moving average. Analysts have kept the faith on Dave & Buster's Entertainment, Inc., as well. At present, all six firms following PLAY rate it a "buy" or better.

  • TERP is off 3.1% at $8.34 after J.P. Morgan Securities downgraded the stock to "neutral" from "overweight." TerraForm Power Inc has been sinking alongside parent company SUNE -- which is rumored to be at "substantial risk" of bankruptcy -- since topping out at an all-time high of $42.66 last April. Option traders have been increasing their bearish presence over the past two weeks, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.78 TERP puts have been bought to open for each call in the last 10 sessions.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!



These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners