Schaeffer's Trading Floor Blog

Analyst Downgrades: Kindred Biosciences Inc, InterMune Inc, and La-Z-Boy Incorporated

Analysts issued bearish notes on KIN, ITMN, and LZB

by 8/21/2014 9:28 AM
Stocks quoted in this article:

Analysts are downwardly revising their ratings today on biotech concerns Kindred Biosciences Inc (NASDAQ:KIN) and InterMune Inc (NASDAQ:ITMN), as well as furniture maker La-Z-Boy Incorporated (NYSE:LZB). Here's a quick look at today's bearish brokerage notes on KIN, ITMN, and LZB.

  • KIN is bracing for a 30% plunge out of the gate -- and could erase its year-to-date surplus -- after the firm unveiled disappointing data for its joint pain drug for canines. As a result, some once-bullish analysts are hitting the exits, with Roth Capital cutting its price target to $11.50, BMO slashing its price target to $19 from $30, and Leerink more than halving its price target to $11.25 from $29. More negative notes could be on the horizon for Kindred Biosciences Inc, too, as the consensus 12-month price target of $26.40 represents a steep premium to the stock's current perch at $14.21.

  • ITMN -- which settled at $54.10 after tagging a nearly 14-year high of $55.24 on Tuesday -- is pointed 1.1% lower, after Wells Fargo downgraded the shares to "market perform" from "outperform." The bearish note is relatively rare for InterMune Inc, as seven out of nine analysts offer up "strong buy" opinions. In light of the stock's stunning performance on the charts -- ITMN has skyrocketed 267% in 2014 -- its 14-day Relative Strength Index (RSI) sits at a lofty 73, in overbought territory. In other words, the shares could be due for a short-term breather.

  • LZB dropped 6.4% to finish at $21.74 yesterday, as investors panned the company's fiscal first-quarter earnings report. This morning, Raymond James weighed in by trimming its price target on the security to $28 from $32, though the firm offered up a "strong buy" rating. Despite its lackluster showing in the earnings spotlight, or its year-to-date loss of nearly 30%, La-Z-Boy Incorporated still has quite a few fans on the Street. In fact, not one of the five brokerage firms following LZB deems it a "hold" or "sell," and the average 12-month price target of $29 represents expected upside of more than 33% from the equity's current price.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.