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Analyst Downgrades: JA Solar Holdings Co., Ltd., Trina Solar Limited, and Zumiez Inc.

Analysts downwardly revised their ratings and price targets on JA Solar Holdings Co., Ltd. (ADR) (JASO), Trina Solar Limited (ADR) (TSL), and Zumiez Inc. (ZUMZ)

Jun 3, 2016 at 9:38 AM
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Analysts are weighing in on alternative energy stocks JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) and​ Trina Solar Limited (ADR) (NYSE:TSL), as well as retailer Zumiez Inc. (NASDAQ:ZUMZ). Here's a quick roundup of today's bearish brokerage notes on JASO, TSL, and ZUMZ.

  • Roth cut its rating on JASO to "neutral" and its price target to $8. Out of the gate, the stock is down 1.7% at $7.68, bringing its year-to-date deficit to 21%. Short sellers should be pleased with JA Solar Holdings Co., Ltd.'s technical trajectory. After all, over 8% of the stock's float is sold short, and it would take more than a week for these shorts to cover their positions, at JASO's average trading levels.

  • Roth also weighed in on TSL, reducing its opinion to "neutral" and its price target to $8. As a result, the shares have slid 4.4% to trade at $7.69 -- after seemingly finding a foothold atop the $8 level in recent weeks. In fact, Trina Solar Limited isn't too far from its two-year low of $7.15, notched in late August. Options traders have been lining up to bet bearishly on the solar stock lately. In fact, TSL's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 6.72 ranks just 1 percentage point from a 12-month peak.

  • ZUMZ reported a slimmer-than-expected first-quarter loss, but the retailer's same-store sales fell 7.5% year-over-year -- in stark contrast to this sector peer. Wall Street is panning the quarterly update, too, as no fewer than five analysts have slashed their price targets on the stock. The deepest cuts came courtesy of Wedbush and Credit Suisse, which each lowered their target price to $12 from $15. Not surprisingly, Zumiez Inc. has tanked out of the gate, down 8.7% at $13.75 -- putting the shares on track for their lowest daily close of 2016. Short sellers have to be loving this price action. After all, nearly 28% of ZUMZ's float is sold short, which would take close to two weeks to buy back, at the stock's typical trading volumes.
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