Notable Downgrades: FARO Technologies (FARO), Groupon (GRPN), Enphase Energy (ENPH), Herbalife (HLF)

Analysts at Oppenheimer downgraded FARO Technologies Inc. (FARO) from ‘Outperform’ to ‘Perform’ in a research report issued to clients on Wednesday, noting management transition may put brakes on the prospect for strategic acquisitions. This and other catalysts are currently dormant, not dead, but it may be several quarters before they drive the story, justifying firm’s more cautious rating.

On valuation measures, FARO Technologies Inc. stock it’s trading at a forward P/E multiple of 14.18x, and at a multiple of 15.90x this year’s estimated earnings. The t-12-month revenue at FARO Technologies is $340.11 million. FARO ‘s ROE for the same period is 7.98%.

Shares of the $427.96 million market cap company are down 36.88% year-over-year and 43.76% year-to-date.

FARO Technologies Inc., currently with a median Wall Street price target of $40.00 and a high target of $54.00, dropped $10.65 to $24.60 in recent trading.

The chart below shows where the equity has traded over the past 52-weeks.

Groupon, Inc. (GRPN) was downgraded from ‘Outperform’ to ‘Market Perform’ at Wells Fargo (WFC). The name was also downgraded to ‘Underperform’ from ‘Neutral’ at BofA (BAC).

Shares have traded today between $2.78 and $4.05 with the price of the stock fluctuating between $2.78 to $8.43 over the last 52 weeks.

Groupon Inc. shares are currently changing hands at 23.87x this year’s forecasted earnings, compared to the industry’s 14.11x earnings multiple. Ticker has a t-12 price/sales ratio of 0.81. EPS for the same period registers at $0.12.

Shares of Groupon have lost $1.09 to $2.94 in mid-day trading on Wednesday, giving it a market cap of roughly $1.92 billion. The stock traded as high as $8.43 on Dec. 29, 2014.

Needham reported on Wednesday that they have lowered their rating for Enphase Energy, Inc. (ENPH), saying it sees FY16 mostly as a transitional year for the name with increased losses and cash burn, as the company pursues a more aggressive pricing strategy that should result in lower margins. Enphase was also downgraded to ‘Neutral’ from ‘Buy’ with $3 target at ROTH Capital.

Enphase Energy Inc. recently traded at $2.32, a loss of 37.70%, or $1.40 over Tuesday’s closing price. The name has a current market capitalization of $103.37 million.

Herbalife Ltd. (HLF) had its price target reduced to $85 from $100, or 17.9x 2016 EPS by analysts at Pivotal Research Group on Wednesday. Currently there are 3 analysts that rate HLF a ‘Buy’, no analyst rates it a ‘Sell’, and 3 rate it a ‘Hold’.

HLF was down $3.03 at $54.82 in mid-day trade, moving within a 52-week range of $27.60 to $61.95. The name, valued at $5.07 billion, opened at $56.65 versus $57.85 previous close.

On valuation measures, Herbalife shares are currently priced at 16.92x this year’s forecasted earnings. Ticker has a t-12 price/sales ratio of 1.15. EPS for the same period registers at $3.24.

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