Analyst Downgrades: Alibaba Group Holding Ltd, Canadian Solar Inc., and Perrigo Company plc

Analysts downwardly revised their ratings and price targets on Alibaba Group Holding Ltd (BABA), Canadian Solar Inc. (CSIQ), and Perrigo Company plc Ordinary Shares (PRGO)

Aug 24, 2016 at 9:44 AM
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Analysts are weighing in on e-tailer Alibaba Group Holding Ltd (NYSE:BABA), alternative energy stock Canadian Solar Inc. (NASDAQ:CSIQ), and drugmaker Perrigo Company plc Ordinary Shares (NYSE:PRGO). Here's a quick roundup of today's bearish brokerage notes on BABA, CSIQ, and PRGO.

  • BABA saw its price target cut to $109 at Deutsche Bank, though this is still a nearly 14% premium to last night's close -- and sits in territory not charted since December 2014. While off 0.3% this morning at $95.51, the stock has been red-hot since bottoming in February around $60, shooting 61% higher. Not surprisingly, bullish options betting has been all the rage on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, Alibaba Group Holding Ltd has racked up a 10-day call/put volume ratio of 2.52 across these exchanges, in the bullishly skewed 84th percentile of its annual range.
  • CSIQ is down 1.4% at $13.27, after Barclays downgraded its rating to "equal weight" from "overweight," and slashed its price target to $14 from $24. Explaining its rationale, the brokerage firm said it sees "unavoidable risks" to Canadian Solar Inc.'s 2017 estimates, and prefers to "weather the storm in less levered or more stable names." Canadian Solar Inc. is no stranger to technical trouble, down 54% year-to-date. Yet, two-thirds of analysts rate the embattled shares a "strong buy," leaving the door wide open for additional downgrades.
  • PRGO was hit with a price-target cut to $100 from $109 at Morgan Stanley. This hardly comes as a shock, considering the shares have been trekking lower for the past year. In recent weeks, Perrigo Company plc has been attempting to close a post-earnings bear gap, but is running into resistance at its 50-day moving average. On the sentiment front, options speculators aren't displaying much confidence in the stock. PRGO's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.22 ranks near the top quartile of its annual range, suggesting a healthier-than-usual appetite for bearish bets over bullish of late. At last check, the shares were up 0.2% at $91.55.
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