Analyst Update: Catalyst Pharma, Newmont Mining

Analysts revised their ratings and price targets on Catalyst Pharmaceuticals Inc (CPRX), Newmont Mining Corp (NEM), and TrovaGene Inc (TROV)

Apr 26, 2016 at 2:03 PM

Analysts are weighing in on drugmaker Catalyst Pharmaceuticals Inc (NASDAQ:CPRX), commodity stock Newmont Mining Corp (NYSE:NEM), and molecular diagnostics specialist TrovaGene Inc (NASDAQ:TROV). Here's a quick roundup of today's brokerage notes on CPRX, NEM, and TROV.

CPRX has lost over half its value today to perch at $0.58, and earlier struck a three-year low of $0.51. Crushing the pharmaceutical stock is news the U.S. Food and Drug Administration (FDA) -- which is also leveling another drugmaker -- requested an additional trial on Catalyst Pharmaceuticals Inc's experimental treatment for Lambert-Eaton myasthenic syndrome (LEMS). Exacerbating the stock's technical woes, Piper Jaffray lowered its rating to "neutral" from "overweight" and cut its price target to $1, while SunTrust Robinson reduced its outlook to $5 from $6. Additional downgrades could be on the way, considering 100% of analysts tracking CPRX -- Piper Jaffray notwithstanding -- maintain "strong buy" opinions.

Unlike this mining stock, NEM is up 1.8% at $31.68. Late last night, RBC upgraded its rating to "outperform" from "sector perform," and boosted its price target to $40 from $34 -- in three-year-high territory. Already, it's been a banner year for the shares, which have tacked on 76% in 2016. Suffice it to say, bearish options traders may be feeling the heat. During the last two weeks across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.45 Newmont Mining Corp puts for every call -- a ratio that ranks in the 85th annual percentile. A capitulation among these bearish bettors could result in tailwinds for NEM.

TROV has tanked 7.2% to $4.39, pushing its week-to-date loss beyond 29%. Since the company announced a new CEO yesterday, its stock has been punished by the brokerage crowd. Specifically, Piper Jaffray, Cantor Fitzgerald, and Leerink all revised their ratings down to the equivalent of a "hold," while the latter two slashed their price targets to $5 and $4.50, respectively. Further, Piper added, "We have yet to cover a company with internal strife that consistently beat numbers," while Leerink opined that it's "not confident the turnover is complete." This should certainly lift the spirits of short sellers, though TROV is on the short-sale restricted list today. Nearly 19% of TrovaGene Inc's float is sold short, representing 10.2 times the stock's typical daily trading levels.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Aratana Therapeutics Inc, Oracle Corporation, and Palo Alto Networks Inc and Analyst Downgrades: Perrigo Company plc, Sarepta Therapeutics Inc, and First Solar, Inc.

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