Research Analysts’ downgrades for Friday, July 12th:
Ascent Capital Group Inc. Series A (NASDAQ: ASCMA) was downgraded by analysts at Imperial Capital from an outperform rating to an in-line rating. Imperial Capital currently has $89.00 target price on the stock, up from their previous target price of $75.00. They noted that the move was a valuation call. The analysts noted that the move was a valuation call.
Ascent Capital Group Inc. Series A (NASDAQ: ASCMA) was downgraded by analysts at Goldman Sachs Group Inc. from a hold rating to a sell rating.
Ceres (NASDAQ: CERE) was downgraded by analysts at Raymond James from an outperform rating to a market perform rating.
Chesapeake Utilities Corp. (NYSE: CPK) was downgraded by analysts at Hilliard Lyons from a buy rating to a neutral rating. The analysts wrote, “We are lowering our investment rating on CPK shares from Buy to Neutral. Shares have gained ~10% in July and ~25% YTD, leaving the stock just shy of our prior 1-year price target of $57. We believe the qualitative story at Chesapeake remains strong; however, investor sentiment seems to have remained bullish as well. At current prices, we see a roughly neutral risk/reward scenario and would prefer to add shares into weakness.”
Fortress Investment Group LLC (NYSE: FIG) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. Zacks currently has $8.20 target price on the stock.
Hi-Tech Pharmacal Co. (NASDAQ: HITK) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. The firm currently has $32.40 price target on the stock.
Hatteras Financial Corp. (NYSE: HTS) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. They currently have $22.60 target price on the stock.
MoneyGram International (NYSE: MGI) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. Zacks currently has $21.00 target price on the stock.
NuStar Energy L.P. (NYSE: NS) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. They currently have $42.00 price target on the stock. Zacks’ analyst wrote, “Taking into account NuStar’s grim first quarter results, we are recalibrating our investment thesis on the midstream energy partnership to Underperform from Neutral. In particular, lower contribution from its storage business adversely impacted NuStar’s March quarter profits. Though we welcome the partnership’s 50% stake sale in its volatile asphalt operations, NuStar’s high debt levels and exposure to volatile commodity prices will be a drag on its near to medium term outlook. We are also concerned by the inherent seasonality of the road construction business. Considering these headwinds, we expect NuStar to perform below the industry, which gives investors little reason to hold the stock. “
Penford Corp (NASDAQ: PENX) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. Zacks currently has $13.80 target price on the stock.
Pulse Seismic (TSE: PSD) was downgraded by analysts at Cantor Fitzgerald from a buy rating to a hold rating. They currently have C$4.60 target price on the stock, up from their previous target price of C$4.00.
RealD (NYSE: RLD) was downgraded by analysts at Dougherty & Co from a buy rating to a neutral rating.
SM Energy (NYSE: SM) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. The firm currently has $67.00 price target on the stock. Zacks’ analyst wrote, “We are downgrading our recommendation on SM Energy Company to Neutral from Outperform. SM Energy reported a strong first quarter, with production at the top end of the guidance and increased downspacing in the Eagle Ford. But the company’s earnings outlook has dampened due to the current volatile gas price scenario as its portfolio comprises 52% natural gas. Moreover, SM Energy’s diverse asset mix, promising organic production growth outlook, ample liquidity and years of drilling inventory in the Eagle Ford, Bakken, Niobrara, Haynesville and Granite Wash are already reflected in its current price and we see no other positives that it can reap rewards from.”
Siliconware Precisio (NASDAQ: SPIL) was downgraded by analysts at BNP Paribas to a reduce rating.
Spreadtrum Comms (NASDAQ: SPRD) was downgraded by analysts at Needham & Company from a buy rating to a hold rating. Needham & Company currently has $30.00 price target on the stock.
Spreadtrum Comms (NASDAQ: SPRD) was downgraded by analysts at Topeka Capital Markets from a buy rating to a hold rating. The firm currently has $31.00 price target on the stock, down from their previous price target of $32.00. The analysts wrote, “We believe the new increased bid from China-based Tsinghua Holdings, which Spreadtrum has agreed to, more fairly values the underlying asset. We believe the dialogue with Tsinghua has been cooperative and expect a successful acquisition closure at the new bumped up price of $31.”
Spreadtrum Comms (NASDAQ: SPRD) was downgraded by analysts at Canaccord Genuity from a buy rating to a hold rating. They currently have $31.00 target price on the stock, up from their previous target price of $29.00. The analysts wrote, “Spreadtrum and Tsinghua Unigroup Ltd. today jointly announced a definitive merger agreement under which Tsinghua Unigroup will acquire all outstanding ordinary shares of Spreadtrum for $31 per ADR. The acquisition price of $31 is 9% higher than the previous acquisition offer price of $28.50/ADR and values the company at $1.78B on a fully diluted basis. With an expanding product portfolio combined with accelerating low-end smartphone growth in emerging markets, we believe Spreadtrum should post strong sales growth through 2014 despite increased TD-SCDMA competition and a secular decline in the global feature phone market. We increase our price target to the acquisition price of $31 from $29 but downgrade to HOLD from Buy given we believe this transaction will be completed post required approvals.”
Tellabs (NASDAQ: TLAB) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. They currently have $2.00 price target on the stock. Zacks’ analyst wrote, “We are downgrading our recommendation on Tellabs to Underperform ahead of its second quarter-2013 financial results. Tellabs’ woes persist as the company continues to perform disappointingly. The company’s worldwide reputed high-margin digital cross-connect products are gradually showing a downtrend. Management provided a weak financial guidance for second-quarter 2013. The board of directors decided to stop dividend payment in the last reported quarter. Management is aggressively targeting the mobile Internet market since the company’s legacy switching products are quickly losing relevance. Tellabs is emphasizing on mobile backhaul solution, IP-packet optical solution and Insight Analytics Services. Unfortunately, the global macroeconomic fluctuations may hinder its speed of recovery. We do not find any immediate growth catalyst and consequently do not expect Tellabs to achieve profitability anytime soon.”
Torchmark Corp. (NYSE: TMK) was downgraded by analysts at SunTrust Banks Inc. from a buy rating to a neutral rating.
vitacost.com (NASDAQ: VITC) was downgraded by analysts at TheStreet from a hold rating to a sell rating. The analysts wrote, “Vitacost.com (VITC) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been poor profit margins.”