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
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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. 
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