Analysts downwardly revised their ratings and price targets on Tesla Motors Inc (TSLA), Yelp Inc (YELP), and Wynn Resorts, Limited (WYNN)
Analysts are weighing in on electric car concern
Tesla Motors Inc (NASDAQ:TSLA), online review platform
Yelp Inc (NYSE:YELP), and casino stock
Wynn Resorts, Limited (NASDAQ:WYNN). Here's a quick roundup of today's bearish brokerage notes on TSLA, YELP, and WYNN.
- J.P. Morgan Securities lowered its price target on TSLA to $180 from $185, representing a 20% discount to last night's close at $225.26 and territory not charted since late February. Nevertheless, the stock appears to be benefiting from broad-market tailwinds, up 0.7% at $226.88. Longer term, TSLA is off 16% from its early April year-to-date high of $269.34, although the shares recently filled their late-June M&A induced bear gap. On the sentiment front, short sellers have been quick to bet against Tesla Motors Inc. Short interest jumped 8% in the most recent reporting period, and now accounts for 29.5% of the security's available float -- or 4.3 times the average daily pace of trading.
*Updated: Tesla CEO Elon Musk announced his "master plan" for the company will be released at 5:00 p.m. PDT today.
- YELP has bounced back from earlier losses, last seen up 0.1% to trade at $29.21, as a downgrade to "neutral" from "buy" at Citigroup takes a back seat to the brokerage firm's price-target hike to $31 from $27. This is just the latest in a string of mixed analyst notes the stock has received in recent weeks, although more than 70% of those covering the shares maintain a "hold" or worse recommendation. In the options pits, meanwhile, traders have been initiating long calls relative to puts at a rapid-fire rate. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Yelp Inc's 10-day call/put volume ratio of 5.43 ranks in the 84th annual percentile. On the charts, YELP stock has nearly doubled since bottoming at a three-year low of $14.53 in mid-February.
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UBS followed in the recent footsteps of J.P. Morgan Securities, lowering its rating on WYNN to "neutral" from "buy," with the brokerage firm citing a "less favorable risk/return" backdrop with the stock at "these higher levels. In fact, while the shares are down 1.7% to trade at $93.54 this morning, they remain up 35% year-to-date. In the options pits, speculative players have shown a distinct preference for calls over puts. Not only does WYNN's top-heavy 10-day call/put volume ratio of 2.62 at the ISE, CBOE, and PHLX sit just 5 percentage points from a 52-week peak, but its Schaeffer's put/call open interest ratio (SOIR) of 0.58 ranks lower than 96% of comparable readings taken in the past year. In other words, short-term speculators have rarely been as call-heavy toward Wynn Resorts, Limited as they are now.
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