Notable Analyst Calls: SolarCity (SCTY), Tesla (TSLA), FedEx (FDX), Adobe Systems (ADBE)

Wall Street

Analysts at Stifel downgraded SolarCity Corporation (SCTY) from ‘Buy’ to ‘Hold’ in a research report issued to clients on Wednesday. The cut follows an acquisition proposal from Tesla Motors for $26.50 – 28.50 in Tesla shares based on yesterday’s close. Stifel said that if the deal does not materialize, it could create a disproportionate downside for SolarCity’s PPS.

SolarCity Corp., currently with a median Street price target of $30.00, rose $1.11 to $22.29 in recent trading. Shares of the $2.19 billion market cap company are down 63.28% year-over-year and 58.47% year-to-date.

Analysts at Oppenheimer are out with a report this morning downgrading shares of Tesla Motors (TSLA) with a ‘Perform’ from ‘Outperform’ rating. Firm does not believe the SolarCity proposal is the best use of capital for the company right now.

In the past 52 weeks, shares of Tesla have traded between a low of $141.05 and a high of $286.65 and are now at $200.51.

Shares are down 15.47% year-over-year and 8.50% year-to-date. The stock has been downtrending since the beginning of May, down nearly 30% since the beginning of that month.

FedEx Corporation (FDX) was reiterated a ‘Buy’ by Stifel analysts on Wednesday. The broker also raised its price target on the stock to $179 from $178, after the company beat top & bottom-line estimates for the fourth-quarter. The shipping giant reported earnings of $3.30 per share on revenues of $12.98 billion, up 7.1% from a year ago. Analysts were expecting EPS of $3.28 on revenues of $12.77 billion.

For FY17, FDX provided EPS guidance of $11.75-$12.25 versus consensus of $12.07 per share.

The stock is currently down $6.44 to $157.51, the most downside ticker has seen in five months, after the company disappointed investors by not providing more specifics on how the $4.8 billion acquisition of Dutch shipping company TNT Express will affect earnings.

Adobe Systems Incorporated (ADBE) was reiterated as ‘Buy’ with a $122 from $114 price target on Wednesday by UBS. Rosenblatt also reiterated the name with a ‘Buy’ and $112 from $120 price target. Adobe reported earnings last night and revenues that were in-line whereas earnings were better than expected. In its third-quarterly report, the San Jose, CA-based company said it earned $0.71 per share, well above the $0.68 per share analysts were expecting. Revenue rose 20.4% yoy to $1.40 billion, in-line with views for $1.40 billion.

In terms of guidance for Q316, Adobe Systems expects EPS to be in the range of $1.42-$1.47 billion, as compared to analysts’ expectations of $1.47 billion. The management also gave its bottom line range of $0.69-$0.75 per share, against projections of $0.71 per share.

Ticker is down 4.77% to $94.96 on heavy trading volume late Wednesday afternoon.

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