Analyst Downgrades: Cisco Systems, Inc., SunPower Corporation, and First Solar, Inc.

Analysts downwardly revised their ratings and price targets on Cisco Systems, Inc. (NASDAQ:CSCO), SunPower Corporation (NASDAQ:SPWR), and First Solar, Inc. (NASDAQ:FSLR)

Nov 17, 2016 at 9:17 AM
facebook twitter linkedin


Analysts are weighing in on tech giant Cisco Systems, Inc. (NASDAQ:CSCO), as well as solar stocks SunPower Corporation (NASDAQ:SPWR) and First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bearish brokerage notes on CSCO, SPWR, and FSLR.

  • CSCO is down 5% ahead of the open, as a disappointing fiscal second-quarter outlook overshadows the company's earnings beat. At least five brokerage firms have since reduced their price targets, including MKM Partners, which lowered its target to $31 -- in line with last night's close of $31.57. Cisco Systems, Inc. is up 16.3% this year, but short-term options traders are seemingly positioned for today's pending pullback. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.23 is just 2 percentage points from a 12-month peak, indicating an extremely unusual put-skew. 

  • SPWR has had a dreadful year on the charts, losing more than three-fourths of its value to trade at $7.16, and hitting a three-year low of $6 just yesterday. Now, Baird is lowering its expectations, downgrading the stock to "neutral" and cutting its price target to $7 from $12. Don't be surprised if more bearish notes come through and weigh on SunPower Corporation in the near term, since not one of the 17 covering brokerage firms have given the shares a "sell" rating. Not to mention, SPWR's average 12-month price target of $12.62 represents a 76% premium to current levels. Ahed of the open, the stock is down another 3.8%.
  • FSLR is getting crushed in electronic trading, falling 11.2%, after the company announced a major restructuring that will reduce its workforce by 25% and weigh significantly on its outlook. Analysts have been quick to respond, with Goldman Sachs among at least eight brokerage firms to lower their price targets, setting it at $26 -- though JMP Securities actually upgraded the stock to "market perform" from "market underperform." Regardless, First Solar, Inc. is on pace to open at a fresh three-year low, after settling at $32.82 on Wednesday, well below its two-year high of $74.29 from March. This is all good news for some, since FSLR is heavily shorted. By the numbers, roughly 21% of the equity's float is sold short, which equals six days' worth of trading activity, going by the stock's average daily volumes. 
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners