Analyst Update: BorgWarner Inc., Swift Transportation Co, and SolarCity Corp

Analysts revised their ratings and price targets on BorgWarner Inc. (BWA), Swift Transportation Co (SWFT), and SolarCity Corp (SCTY)

Jun 21, 2016 at 1:52 PM
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Analysts are weighing in on automotive supplier BorgWarner Inc. (NYSE:BWA), trucking concern Swift Transportation Co (NYSE:SWFT), and alternative energy stock SolarCity Corp (NASDAQ:SCTY)Here's a quick roundup of today's brokerage notes on BWA, SWFT, and SCTY.

  • BWA is off 4.3% at $33.25, after BofA-Merrill Lynch downgraded its rating on the stock to "neutral," and reduced its price target to $39 from $45. The brokerage firm also reduced its 2016 and 2018 U.S. unit sales estimates. The shares have shed 45% of their value year-over-year, and were rejected Monday by resistance at their 80-day moving average. That hasn't stopped options traders from placing bullish bets, however. While options volume is generally light in absolute terms, BorgWarner Inc. has seen more than 11 calls bought to open for each put over the past 10 weeks on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Furthermore, the resulting 50-day call/put volume ratio of 11.29 ranks higher than 99% of the past year's readings.
  • A price-target cut to $18 from $19 at UBS has SWFT trading 6.6% lower at $15.79, with a disappointing outlook from one sector peer also weighing on the stock. More than two-thirds of the analysts following Swift Transportation Co rate the shares a "buy" or better, but traders may not be convinced. Short interest on SWFT rose by nearly 6% during the most recent reporting period, and now represents over 31% of the equity's available float. At SWFT's typical pace of trading, it would take more than eight sessions to cover all these bearish positions.
  • SCTY is on the receiving end of bearish brokerage attention for a second straight day, this time in the form of a price-target cut to $26 from $27 at Oppenheimer. Over the past 12 months, SolarCity Corp has surrendered nearly 64% of its value, so it's little surprise options traders have taken a pessimistic view. The stock's 50-day put/call volume ratio at the ISE, CBOE, and PHLX sits at 1.40 -- higher than 80% of all readings taken in the past year. The shares were last seen down 4% at $21.01.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Cirrus Logic, Inc., Priceline Group Inc, and Viacom, Inc. and Analyst Downgrades: Nike Inc, LendingClub Corp, and Werner Enterprises, Inc.

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