Analyst Downgrades: Tesla Motors Inc, Qorvo Inc, and Bonanza Creek Energy Inc

Analysts downwardly revised their ratings and price targets on Tesla Motors Inc (TSLA), Qorvo Inc (QRVO), and Bonanza Creek Energy Inc (BCEI)

May 25, 2016 at 9:25 AM
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Analysts are weighing in on electric car maker Tesla Motors Inc (NASDAQ:TSLA), semiconductor specialist Qorvo Inc (NASDAQ:QRVO), and energy stock Bonanza Creek Energy Inc (NYSE:BCEI). Here's a quick roundup of today's bearish brokerage notes on TSLA, QRVO, and BCEI.

  • TSLA is down 0.7% ahead of the bell, following a price-target cut to $242 from $252 at RBC. The shares recently pulled back from their early-April year-to-date high of $269.34, and they're now struggling to reclaim their 200-day moving average, closing Tuesday at $217.91. Analysts appear hesitant, with 11 out of 17 rating the stock a "hold" or worse, and short interest on TSLA remains elevated. But near-term option traders have been favoring calls over puts to an unusual degree ahead of Monday's annual shareholder meeting. Tesla Motors Inc holds a Schaeffer's put/call open interest ratio (SOIR) of 0.79 -- lower than 94% of all readings in the past year.

  • CLSA initiated coverage on QRVO with a downbeat "underperform" rating -- a change in pace for the Apple Inc. (NASDAQ:AAPL) supplier, which 11 out of 15 analysts call a "buy" or better. The shares are off 38% year-over-year, as of Tuesday's close at $50.98, but recently retook their 200-day trendline for the first time since early August. The shares also just found their way back into positive year-to-date territory . Options traders have been busy betting against Qorvo Inc, though, as the stock's 50-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 94th percentile of its annual range, at 1.88.

  • BCEI is set to drop 6.8% at the open, after Imperial Capital lowered its rating on the stock to "underperform" from "in-line," and trimmed its price target to $1.50. Canaccord Genuity also cut its price target on Bonanza Creek Energy Inc, to $1.50 from $2. The shares have lost nearly 61% of their value in 2016, and yesterday plummeted on news that the company's borrowing base more than halved, with the stock settling at $2.06 on Tuesday. Unsurprisingly, only one of the 21 brokerage firms providing coverage rates BCEI better than a "hold." And short interest is high, accounting for more than 35% of the stock's available float. Still, the equity's SOIR of 0.04 sits 1 percentage point from an annual low, indicating short-term options traders have rarely been so call-heavy toward the stock.
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