Analyst Downgrades: Cree, Inc., First Solar, Inc., and Intel Corporation

Analysts downwardly revised their ratings and price targets on Cree, Inc. (CREE), First Solar, Inc. (FSLR), and Intel Corporation (INTC)

by Alex Eppstein

Published on Oct 19, 2016 at 9:28 AM
Updated on Jun 24, 2020 at 10:16 AM

Analysts are weighing in on LED specialist Cree, Inc. (NASDAQ:CREE), alternative energy issue First Solar, Inc. (NASDAQ:FSLR), and Dow stock Intel Corporation (NASDAQ:INTC). Here's a quick roundup of today's bearish brokerage notes on CREE, FSLR, and INTC.

  • CREE is bracing for an 11.4% drop out of the gate and a possible annual low, on the heels of a fiscal first-quarter revenue miss and a disappointing current-quarter forecast. Making matters worse, no fewer than five analysts cut their price targets on the stock, with Goldman Sachs lowering its outlook to $17 -- waters not charted since early 2009, and a 32.5% discount to Tuesday's close at $25.20. While Cree, Inc. will almost surely land on the short-sale restricted list this morning, short interest is already sky-high. Over 9% of the stock's float is sold short, which -- at CREE's typical trading levels -- would take nearly three weeks to cover.
  • Baird cut its price target on FSLR to $58 from $60 -- though this is still a whopping 46.6% premium to last night's settlement at $39.57. The shares have done little to inspire confidence in 2016, shedding two-fifths of their value. Perhaps that's why option bears have been barraging First Solar, Inc. of late. Specifically, the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is a top-heavy 3.58 -- which ranks in the extreme 100th percentile of its annual range.
  • INTC is pointed 4.5% lower ahead of the bell, as the company's disappointing guidance overshadows better-than-expected earnings and revenue. Analysts are throwing salt on the stock's wounds, with no fewer than eleven cutting their price targets -- including Bernstein to $33 from $35 -- though Morgan Stanley broke from the pack, upping its target price to $35 from $34. While Intel Corporation could struggle today, it's been strong overall, advancing nearly 10% year-to-date to settle last night at $37.75, and recently touching a 15-year high. Not surprisingly, bullish options betting has accelerated lately, per INTC's 10-day ISE/CBOE/PHLX call/put volume ratio of 2.43 -- which ranks in the high 89th percentile of its 12-month range.
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