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

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!

Follow @Schaeffers

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade. Professional traders have rushed into the market and are making a mint. Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.