Analyst Downgrades: First Solar, Alpha Natural Resources

Analysts downwardly revised their ratings on First Solar, Inc. (NASDAQ:FSLR), Alpha Natural Resources, Inc. (NYSE:ANR), and Arch Coal Inc (NYSE:ACI)

May 26, 2015 at 9:23 AM

Analysts are weighing in today on alternative energy issue First Solar, Inc. (NASDAQ:FSLR), as well as coal concerns Alpha Natural Resources, Inc. (NYSE:ANR) and Arch Coal Inc (NYSE:ACI). Here's a quick roundup of today's bearish brokerage notes on FSLR, ANR, and ACI.

RBC downgraded FSLR to "underperform" from "sector perform," and slashed its price target by $20 to $34, citing the company's "flattish" revenue growth forecast for this year and next. As such, the shares are pointed 4% lower ahead of the bell. Longer term, however, First Solar, Inc. is sitting on a 23.5% year-to-date lead at $55.07. Options traders have been skeptical toward the stock in recent weeks. FSLR's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.45 sits at the top of its annual range. Should the shares resume their longer-term uptrend, a capitulation among these doubters could result in tailwinds.

ANR has struggled mightily on the charts, shedding 61% year-to-date to rest at $0.65. That trend is continuing this morning, with the equity dropping 7.7% ahead of the open, after being started with an "underperform" assessment and $0.50 price target at Credit Suisse. In fact, Alpha Natural Resources, Inc. is on track to open at a new record low. Meanwhile, short sellers have been piling on. Roughly one-third of ANR's float is sold short, which would take close to 14 sessions to repurchase, at the stock's average daily trading levels.

Sector peer ACI is also struggling in electronic trading, after Credit Suisse slapped it with a new "underperform" rating and $0.50 price target. The bearish note has sent the shares 9.4% south of breakeven ahead of the open, putting them on pace for an all-time low. Longer term, Arch Coal Inc has surrendered nearly 63% in 2015 to sit at $0.66. Short sellers have taken note, too. Close to 23% of ACI's float is dedicated to short interest, and at its average trading volume, it would take more than three weeks to repurchase all these bearish bets.

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