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
facebook twitter linkedin


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.

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.
 

  

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners