Analyst Downgrades: Lululemon Athletica inc., JA Solar Holdings Co., Ltd., and Bank of America Corp

Analysts downwardly revised their ratings and price targets on Lululemon Athletica inc. (NASDAQ:LULU), JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), and Bank of America Corp (NYSE:BAC)

Nov 16, 2016 at 10:20 AM
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Analysts are weighing in on yoga apparel firm Lululemon Athletica inc. (NASDAQ:LULU), solar energy name JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), and bank stock Bank of America Corp (NYSE:BAC). Here's a quick roundup of today's bearish brokerage notes on LULU, JASO, and BAC.

  • LULU has dropped 1.2% to trade at $56.18, following a downgrade to "neutral" from "outperform" at Credit Suisse, which also slashed its price target to $53 from $76. Specifically, the brokerage firm said it has "less conviction in the company being able to sustain recent topline momentum," due to a string of markdowns. Given the stock's recent technical performance, this bear note isn't surprising. Lululemon Athletica inc. has given back 31% since its August high of $81.81, and more losses could be in store if other analysts following Credit Suisse's lead. For instance, 14 brokerage firms still consider LULU stock a "strong buy," and its 12-month price target resides at $68.64. 

  • Credit Suisse also weighed in on JASO, initiating coverage with a "neutral" rating and $9.69 price target, while Axiom Capital lowered its rating on the stock to "sell" from buy" and the solar sector as a whole to "market underweight" from "market overweight." The latter specifically said it expects less favorable environmental policies from President-elect Donald Trump. As such, the shares are trading 0.4% lower at $5.49 -- continuing their consolidation in the $5.30-$5.50 region, after shedding 43% year-to-date. Meanwhile, short-term options traders have shown a preference for calls over puts. Specifically, JA Solar Holdings Co.'s Schaeffer's put/call open interest ratio (SOIR) comes in at a call-skewed 0.12, ranking below four-fifths of all similar readings from the past year. 
  • Baird this morning suggested traders take profits from the recent surge in bank stocks, while lowering its rating on BAC to "neutral" -- though it bumped its price target to $18 from $17. Speaking of that surge, the stock has gained almost 17% since last week's presidential election, but is 1.7% lower today at $19.82. In the meantime, options traders have overwhelmingly been bullish. Bank of America Corp's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at a top-heavy 4.60, putting it in the 72nd percentile of its annual range. 
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