Kornit Digital Stock Gets Crushed; SunPower Shakes Off Downgrade

SPWR stock was cut to 'underweight' at Morgan Stanley

Managing Editor
Sep 27, 2017 at 10:14 AM
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Analysts are weighing in on printing stock Kornit Digital Ltd. (NASDAQ:KRNT), solar energy stock SunPower Corporation (NASDAQ:SPWR), and burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG). Here's a quick roundup of today's bearish brokerage notes on shares of KRNT, SPWR, and CMG.

Kornit Digital Cuts Guidance, Prompting A Flurry Of Bearish Analyst Attention

Kornit Digital stock is down 25% to trade at $13.10 -- the worst percentage loser on the Nasdaq -- after the printing company lowered its third-quarter revenue guidance. The disappointing news prompted Citigroup to downgrade the printing stock to "neutral" from "buy," while slashing its price target to $14 from $21.50. Four other brokerages joined in on the fun, including Stifel, which cut its price target to $18 from $20. The drop today takes KRNT stock to levels not seen since early January.

KRNT's average price target of $19.08 represents a 28% premium to the stock's current perch, indicating more cuts could be on the way. Meanwhile, although Kornit Digital is on the short-sale restricted list today, several shorts are likely cheering. Short interest grew 35% during the last two reporting periods, to 2.82 million shares -- 11.5% of the stock's available float.

Morgan Stanley Downgrades SunPower Stock

SunPower stock is up 2% to trade at $7.37, despite Morgan Stanley downgrading the solar name to "underweight" from "equal weight." SPWR stock has shed 37% since its annual high of $11.70 on July 28, and has underperformed the broader S&P 500 Index (SPX) during the past three months. The stock last week attempted a rebound after a favorable federal ruling for the solar sector, but backed down from its 200-day moving average.

While short interest decreased by 12% during the last reporting period, the 13.41 million shares of SPWR sold short still represent a whopping 22% of the stock's total available float. It would take more than seven sessions to repurchase these pessimistic positions, at SunPower's average daily trading volume.

Chipotle Mexican Grill Stock Hit With Price-Target Cut

While Chipotle Mexican Grill stock is up 0.4% to trade at $320.59, the burrito chain was slapped with a price-target cut from BMO earlier this morning, to $330 from $350. CMG's average price target is $380.88, implying expected upside of 19% from its current perch, which suggests more price-target cuts could be coming down the pike.

It's been a rough year for CMG stock, which has shed 24% year-over-year, and touched a new four-year low last week, amid ugly reviews of Chipotle's queso dip. Unsurprisingly, options buyers have been upping the bearish ante on CMG. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMG's 10-day put/call volume ratio of 0.90 ranks in the elevated 77th annual percentile, meaning puts have been bought to open relative to calls at a faster-than-usual clip.

 

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