Analyst Downgrades: Ritchie Bros. Auctioneers Inc and Cree, Inc.

Analysts downwardly revised their ratings and price targets on Ritchie Bros. Auctioneers Inc (USA) (RBA) and Cree, Inc. (CREE)

Dec 27, 2016 at 9:43 AM
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Analysts are weighing in on industrial equipment seller Ritchie Bros. Auctioneers Inc (USA) (NYSE:RBA) and LED lighting stock Cree, Inc. (NASDAQ:CREE). Here's a quick roundup of today's bearish brokerage notes on RBA, and CREE.

  • RBA has given up 1.4% to trade at $34.64 this morning, after Raymond James downgraded the stock to "market perform" from "outperform," and cut its price target to $35 from $42, saying "we are formally taking a pause on this stock in light of mounting near-term headwinds and share price strength over the past two years." Ritchie Bros. Auctioneers Inc (USA) has had a solid year, adding nearly 44% in 2016, but after hitting a record high just near $40 earlier this month, the shares have pulled back some. It appears short sellers have been preparing for a selloff, too, as these pessimistic positions climbed by more than 10% during the most recent two-week reporting period. In fact, the 6.4% of RBA's available float now shorted would take three full weeks to buy back, at the stock's average daily volume. 

  • CREE saw its price target set at $17 -- a nearly 39% discount to current levels -- at Goldman Sachs, which maintained its "sell" rating on the stock. Though the shares are up just 3.9% year-to-date, at $27.70, a breather may be due after Cree, Inc.'s recent rally off its early November lows. The equity had a 14-day Relative Strength Index (RSI) of 69 as of last night's close -- just a hair away from overbought territory. Goldman Sachs is hardly alone in its pessimistic view of CREE, too. Only two of the 13 analysts following the stock currently recommend buying the shares.
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