Notable Downgrades: Tesla (TSLA), Gap (GPS), Solera Holdings Inc. (SLH), Yahoo (YHOO)


Shares of Tesla Motors, Inc. (TSLA) are lower by 2.18% to $221.77 in mid-day trading on Friday after the automaker was downgraded to ‘Underweight’ from ‘Equal-Weight’ with $180 from $190 target at Barclays. The firm said the Model X rollout was not the technical boost it had expected, and that Tesla’s ability to become a mass market original equipment manufacturer remains questionable.

The Gap, Inc. (GPS) was downgraded from ‘Buy’ to ‘Neutral’ with a price target cut of $29 from $40 at MKM Partners.

Shares have traded today between $26.50 and $27.54 with the price of the stock fluctuating between $26.50 to $43.90 over the last 52 weeks.

Gap Inc. shares are currently changing hands at 10.31x this year’s forecasted earnings, compared to the industry’s 17.45x earnings multiple. Ticker has a t-12 price/sales ratio of 0.73. EPS for the same period registers at $2.65.

Shares of GPS have lost $1.62 to $27.33 in mid-day trading on Friday, giving it a market cap of $11.12 billion. The stock traded as high as $43.90 in March 31, 2015.

Solera Holdings Inc. (SLH) had its rating lowered from ‘Buy’ to ‘Neutral’ by analysts at Goldman (GS) on Friday. Currently there are 2 analysts that rate SLH a ‘Buy’, 1 analyst rates it a ‘Sell’, and 6 rate it a ‘Hold’.

SLH was up $0.19 at $54.33 in mid-day trade, moving within a 52-week range of $36.14 to $58.19. The name, valued at $3.64 billion, opened at $54.10 versus a $54.14 close.

On valuation measures, Solera Holdings Inc. shares have a t-12 price/sales ratio of 3.18. EPS for the same period registers at ($1.5).

As for passive income investors, the company pays stockholders $0.90 per share annually in dividends, yielding 1.66%.

Yahoo! Inc. (YHOO) was reiterated a ‘Buy’ by Needham analysts on Friday. The broker however, cut its price target on the stock to $40 from $55 on lowered estimates.

YHOO closed at $32.37 on Thursday and is currently trading up $0.13.

In the past 52 weeks, shares of the company have traded between a low of $27.20 and a high of $52.62 and are now trading at $32.50.

Shares are down 21.20% year-over-year and 35.91% year-to-date.

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