Canadian Solar, Red Robin, Texas Roadhouse Downgraded

Canadian Solar Inc. (CSIQ), Red Robin Gourmet Burgers, Inc. (RRGB), and Texas Roadhouse Inc (TXRH) have received bearish analyst attention on Wall Street

Alex Eppstein
Feb 22, 2017 at 9:29 AM
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Analysts are weighing in on alternative energy firm Canadian Solar Inc. (NASDAQ:CSIQ), as well as restaurant stocks Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) and Texas Roadhouse Inc (NASDAQ:TXRH). Here's a quick roundup of today's bearish brokerage notes on CSIQ, RRGB, and TXRH shares.

Canadian Solar Braces For More Losses

CSIQ is down 2.3% pre-market, after J.P. Morgan Securities lowered its rating to "neutral" from "overweight." The solar shares are no stranger to losses, having shed one-quarter of their value year-over-year to trade at $15.36. Understandably, the brokerage community was skeptical of Canadian Solar Inc., even before today. Seven of nine analysts with coverage on the stock have dubbed it a "hold" or "sell," while the consensus 12-month price target of $15.21 is in line with current trading levels.

Red Robin's Weak Comp Sales Prompt Price-Target Cut

RRGB reported adjusted earnings that barely topped the consensus estimate, but said same-store sales fell 4.3% year-over-year. Jefferies responded by cutting its price target to $52 from $56. That doesn't seem to be affecting Red Robin Gourmet Burgers, Inc. shares, though, which have jumped 7.2% ahead of the bell. However, the stock has struggled long term, down 25% in the past 12 months, based on Tuesday's settlement at $47.50. If RRGB shares take off out of the gate, as anticipated, short sellers could be in trouble. Nearly 19% of the stock's available float is sold short, representing two weeks' worth of buying power, at typical daily volumes.

Texas Roadhouse Shares Torpedoed by Earnings

TXRH is poised to plunge 10% out of the gate, on the heels of an earnings miss, and price-target reductions at Maxim and Barclays. On the other hand, Jefferies upped its target price to $38 from $37. Yesterday, Texas Roadhouse Inc ended at $47.79, just below its year-to-date breakeven mark. Amid these less-than-impressive technicals, put buying has outstripped call buying at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the past four weeks, TXRH has racked up a put/call volume ratio of 1.31.

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