Analyst Downgrades: First Solar, Inc., Twenty-First Century Fox Inc, and Tripadvisor Inc

Analysts downwardly revised their ratings and price targets on First Solar, Inc. (FSLR), Twenty-First Century Fox Inc (FOXA), and Tripadvisor Inc (TRIP)

Alex Eppstein
Aug 4, 2016 at 9:55 AM
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Analysts are weighing in on alternative energy stock First Solar, Inc. (NASDAQ:FSLR), media firm Twenty-First Century Fox Inc (NASDAQ:FOXA), and travel issue Tripadvisor Inc (NASDAQ:TRIP). Here's a quick roundup of today's bearish brokerage notes on FSLR, FOXA, and TRIP.

  • FSLR reported a better-than-expected quarterly profit but also cut its full-year earnings guidance, prompting Credit Suisse and J.P. Morgan Securities to reduce their respective price targets to $50 and $65. Out of the gate, the stock dropped 8.1% to $45.23 -- hardly the direction options bulls has been hoping for -- after struggling to topple the half-century $50 mark for the better part of the last two months. Meanwhile, short sellers have been ramping up their bearish bets on First Solar, Inc. During the most recent reporting period, short interest jumped over 29%, and now accounts for 15% of FSLR's float.
  • Despite FOXA's earnings beat, the company's rising costs are sparking concerns on Wall Street. For example, no fewer than six analysts cut their price targets on the stock, with the lowest bar of $31 being set by MoffettNathanson. As a result, Twenty-First Century Fox Inc is 3.1% lower at $26.20, and edging further into negative year-to-date territory. More losses could be ahead if the brokerage bunch continues to switch sides. Specifically, 13 of 19 analysts rate FOXA a "buy" or better -- with not a single "sell" assessment to be found -- leaving the door wide open for future downgrades.
  • Fresh off an earnings miss, TRIP is down 5.9% at $65.37. Making matters worse, Cowen slashed its price target to $60 from $70. Tripadvisor Inc has now lost nearly one-quarter of its value in 2016. Suffice it to say, short sellers are in the driver's seat. During the latest reporting period, short interest jumped 9.4%, and now makes up almost 14% of the struggling stock's float. At TRIP's average daily trading levels, it would take over two weeks for these bears to cover their bets.
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