The shares are failing to capitalize on the upgrade, though
BofA-Merrill Lynch upgraded Pattern Energy Group Inc (NASDAQ:PEGI) to "neutral" from "underperform," calling the renewable energy stock's recent sell-off overdone. The shares have shed 7.4% this quarter, and while the analyst in coverage expects a bottom to be near, they lowered their PEGI price target to $18.50 from $20.
Most analysts are skeptical of PEGI stock, with roughly 63% of those in coverage maintaining a "hold" or worse recommendation. However, the average 12-month price target of $23.04 is a 25.9% premium to current trading levels.
Elsewhere, short interest peaked at 15.13 million shares in the Nov. 1 reporting period but has since declined 13.8%. The 13.03 million shares still sold short represent 14.9% of Pattern Energy stock's available float, or 15 times the average daily pace of trading.
Looking closer at the charts, it's been a range-bound year for PEGI stock. The shares entered 2018 trading near $21.50, a level that's served as a stiff ceiling in the last 12 months. Meanwhile, the $17 region has created a steady floor. The security skimmed the lower end of this trading range during the broader Christmas Eve sell-off, and was last seen down 2.5% at $18.21.
