Tesla, Freeport-McMoRan, L Brands Downgraded

Tesla, Freeport-McMoRan, L Brands received bearish analyst attention ahead of today's open

Mar 28, 2017 at 10:39 AM
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Analysts are weighing in on electric auto stock Tesla Inc (NASDAQ:TSLA), mining concern Freeport-McMoRan Inc (NYSE:FCX), and retailer L Brands. Here's a quick roundup of today's bearish brokerage notes on shares of TSLA, FCX, and LB stock.

China's Tencent Takes Stake in Tesla

TSLA stock is up 2.4% today at $276.65, on news China-based Tencent took a 5% passive stake in the company. This is overshadowing the fact that Goldman Sachs reiterated its "sell" rating on the shares, along with a $187 price target -- territory not seen since early December. In fact, Tesla Inc has surged higher since late 2016, gaining over 55% since its November low, with its recent pullback contained by the rising 50-day moving average. Still, TSLA short interest remains elevated, accounting for over 19% of its float, so the potential for a short-squeeze situation remains. 

Freeport-McMoRan Stock Gains Despite Price-Target Cut

Jefferies cut its price target on FCX shares to $16 from $18.50, but the stock is still up 0.5% at $12.27. Looking back, the equity has struggled since peaking above $17 back in January, but could see support near $12, home to its November pre-bull gap highs. Options traders are certainly bullish. Freeport-McMoRan Inc has a 10-day call/put volume ratio of 2.17 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which tops three-fourths of the past year's readings. 

LB Stock Enters Oversold Territory

LB stock has given back 1.3% to trade at $47.08, and earlier hit a three-year low of $46.76, after Jefferies cut its price target to $35 from $40. L Brands has lost nearly half its value over the past year, yet seven analysts still maintain a "buy" or better rating, suggesting additional bearish brokerage notes could be forthcoming. On a technical basis, however, LB shares have entered oversold territory, according to their 14-day Relative Strength Index (RSI) of 29.5, suggesting a near-term bounce may be on the horizon.

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