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Analyst Downgrades: Bristol-Myers, Teva Pharma and Endo Int

Analysts downwardly revised their ratings and price targets on biotech stocks Bristol-Myers Squibb Co (NYSE:BMY), Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), and Endo International plc – Ordinary Shares (NASDAQ:ENDP)

Jan 20, 2017 at 10:01 AM
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Analysts are weighing in on biotech stocks Bristol-Myers Squibb Co (NYSE:BMY), Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), and Endo International plc – Ordinary Shares (NASDAQ:ENDP). Here's a quick roundup of today's bearish brokerage notes on BMY, TEVA, and ENDP.

  • BMY is down 9.8% at $50.00 -- within a chip-shot of a new two-year low -- after the biotech said it will not be pursuing accelerated approval from the Food and Drug Administration (FDA) for its lung cancer drug combination treatment. In addition, Cowen and Company downgraded BMY to "market perform" from "outperform" and slashed its price target to $65 from $85. Guggenheim also issued a price-target cut to $68 from $86. The biotech, which is due to report earnings next week, is down 53% from its July peak. In the option pits, recent buyers may be kicking rocks, with Bristol-Myers Squibb Co's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sitting just 4 percentage points from an annual peak.
  • TEVA is down 0.2% at $33.40 -- and just off a 10-year low of $33.28 -- after a downgrade to "neutral" from "overweight," and price-target cut to $40 from $45 by J.P. Morgan Securities, which also cut its price target to $40 from $45. TEVA has been steadily slipping lower for the past year, giving up more than half its value. In the option pits, near-term traders have been more put-biased than usual, with Teva Pharmaceutical Industries Ltd's Schaeffer's put/call open interest ratio (SOIR) of 0.77 sitting higher than 76% of all other readings from the last 12 months.

  • ENDP is trading 4.1% lower at $12.40 -- fresh off its own decade-plus low of $12.31 -- following a round of bearish analyst attention, including a cut to "neutral" from "overweight" by J.P. Morgan Securities, which also trimmed its price target to $20 from $30. Deutsche Bank also delivered a price-target cut, to $20 from $25. ENDP is down over 87% since touching an all-time high in April 2015 -- and was 2016's worst performer -- with the shares recently contained by their 160-day moving average. Today's drop could have been in the cards even without the help from the pessimistic analyst attention; as of yesterday, Endo International plc's 14-day Relative Strength Index (RSI) of 29 sitting in "oversold" territory.


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