Thursday Morning’s Market Insights: First Solar, Inc. (FSLR), Seadrill Ltd (SDRL), Cyberark Software Ltd (CYBR), Lululemon Athletica inc. (LULU)

First Solar, Inc. (NASDAQ:FSLR) slipped 10% in pre-market trading down to $52.95 after the company released full-year 2016 guidance yesterday evening. The company announced it expects net sales between $3.9 and $4.1 billion, compared to analysts’ estimates of $4.07 billion. The company estimates EPS between $4.00 and $4.50 on a diluted basis, compared to analysts’ estimates of $4.09. Many found the gross margin estimate, 16% to 18%, disappointing. In light of this announcement, Edwin Mok of Needham downgraded the company from Buy to Hold due to “risks to 2016 earnings, substantially weaker margin trends ahead, post-ITC uncertainty in 2017 and slowed efficiency roll-out.” The analyst continued, “We expect the stock to remain limited in the coming months and we move to the sidelines until we see better clarity of revenue growth and profitability.” According to TipRanks, 5 analysts are bullish on the solar power company while 2 remain on the sidelines. The average price target between these 7 analysts is $63.40, marking a 7.7% potential upside from where shares last closed.

Click here to see past Edwin Mok’s past ratings and performance history. 

Edwin Mok stat

Seadrill Ltd (NYSE:SDRL) is up 4.62% to $4.53 after the value of oil increased $0.43 to $40.54 per barrel. The price jump is thanks to a decrease in U.S. oil inventories, which fell by 3.6 million barrels in the first week of December. This was welcomed news following ten weeks of inventory increases, but the worldwide oversupply remains a concern for the industry. According to the three analysts polled by TipRanks in the last three months, one is neutral on the oil company while two remain bearish. The average 12-month price target between these analysts is $9, marking over a 100% potential increase from where shares last closed.

SDRL consensus

Cyberark Software Ltd (NASDAQ:CYBR) traded up 4% in pre-market trading this morning following an upgrade from J.P. Morgan analyst Sterling Auty. The analyst upgraded CYBR to Outperform from underperform with a $48 price target. The analyst believes that now is time to buy CYBR shares due to the low price. He also points to positive survey results highlighting strong cyber security demand and increased spending. According to TipRanks’ statistics, out of the 9 analysts who have rated CYBR in the last 3 months, 6 gave a Buy rating while 3 remain on the sidelines. The average 12-month price target for the stock is $57.40, marking a 47% upside from where shares last closed.

CYBR Stats

Lululemon Athletica inc. (NASDAQ:LULU) slipped slightly in pre-market trading, falling over 1% to $44.80 following yesterday’s third quarter earnings release. The athletic apparel company posted a 14% year-over-year increase in net revenue, rising to$479.7 million. However, the company posted disappointed guidance, forecasting full year earnings between $1.81 and $1.84 per share, down from the prior estimate of $1.87 to $1.92 per share. Sales forecast also fell from $2.03 – $2.06 billion down to $2.03 – $2.04 billion. In light of this news, an analyst at Bernstein downgraded the company to Market Perform. As of this writing, 9 analysts polled by TipRanks remain bullish on LULU, 2 are bearish, and 5 remain on the sidelines. The average 12-month price target between these 16 analysts is $58.94, marking a 30% potential upside from where shares last closed.

LULU consensus



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