Schaeffer's Trading Floor Blog

Analyst Downgrades: ADI, DNDN, and PCX

Analysts downwardly revised their ratings on Analog Devices, Dendreon, and Patriot Coal

by 5/23/2012 9:06 AM
Stocks quoted in this article:

Analysts are weighing in today on semiconductor stock Analog Devices, Inc. (ADI - 35.80), Provenge parent Dendreon Corporation (DNDN - 7.70), and energy issue Patriot Coal Corporation (PCX - 2.18). Here's a quick roundup of today's bearish brokerage notes.

  • After providing less-than-stellar third-quarter guidance last night, ADI was hit this morning with several price-target cuts. Canaccord Genuity lowered its target to $42 from $48, Jefferies dropped its target to $41 from $43, Macquarie reduced its forecast to $40.30 from $41.70, and UBS cut its target to $38 from $40. Heading into today's session, the average 12-month price target for ADI stood at $42.12, implying expected upside of nearly 18% to Tuesday's close at $35.80. The stock is down 3.8% in pre-market action, putting ADI on pace to start the day beneath the recently supportive $35 level.

  • Amid news of an SEC probe related to Provenge disclosures, Jefferies started coverage of DNDN with an "underperform" recommendation. Most analysts are firmly planted on the fence when it comes to the biotech concern, as 12 out of 19 brokers have doled out a "hold" rating. Given the equity's steep year-over-year decline of 80.6%, there could be additional negative notes in store for DNDN going forward.

  • Deutsche Bank downgraded PCX to "hold" from "buy," just one session after a serious plunge in the stock triggered trading halts. The coal company is struggling to refinance its debt load, and traders punished PCX yesterday with a daily drop of 35%. In the process, the shares touched a fresh record low of $1.36. There could be more downgrades on the horizon for PCX, which is now down 74.3% year-to-date -- currently, not one of the 14 analysts tracking the shares has handed out a "sell" rating.

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