Analyst Downgrades: Google, Alexion, and TripAdvisor

Analysts downwardly revised their ratings on GOOGL, ALXN, and TRIP

Jan 8, 2015 at 9:24 AM
facebook X logo linkedin


Analysts are weighing in today on tech titan Google Inc (NASDAQ:GOOGL), drugmaker Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), and online travel issue Tripadvisor Inc (NASDAQ:TRIP). Here's a quick roundup of today's bearish brokerage notes on GOOGL, ALXN, and TRIP.

  • GOOGL got hit with a pair of downbeat analyst notes this morning. Specifically, Stifel cut its outlook to "hold" from "buy," while Evercore ISI slashed its price target by $50 to $675 (although the brokerage firm reiterated its "buy" rating). Since topping out at a record high of $615.04 last February, shares of GOOGL have surrendered nearly 18%, and closed last night at $505.15. Despite this negative price action, most analysts are upbeat, with 84% of those covering the shares maintaining a "buy" or better rating, and not a single "sell" to be found. Plus, the average 12-month price target of $642.99 sits in territory yet to be charted. Should Google Inc continue to struggle, an additional round of downgrades and/or price-target cuts could pressure the shares lower.

  • ALXN is more than 3% lower in electronic trading, after the company's experimental drug, eculizumab, failed to meet the main goal in a mid-stage trial. The news was met with a round of bearish brokerage notes, including one from Jefferies, which cut its price target to $161 from $170 -- and underscored its lackluster "hold" rating -- saying an approval for the drug from the Food and Drug Administration (FDA) is highly unlikely. Heading into today's session, the stock was sporting a 40.2% year-over-year lead, yet ALXN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.46 ranks in the bearishly skewed 84th annual percentile. Given Alexion Pharmaceuticals, Inc.'s longer-term trajectory, a portion of this put buying may be a result of shareholders protecting paper profits against an unexpected slide.

  • Stifel downgraded TRIP to "hold" from "buy" ahead of the bell, echoing the majority of analysts covering the shares. This negative outlook isn't too surprising, considering the equity has shed more than 36% since hitting its all-time high of $111.24 in late June to trade at $70.84. More recently, the stock has underperformed the broader S&P 500 Index (SPX) by almost 18 percentage points over the past 60 sessions, yet traders have shown a preference for near-the-money calls over puts among options slated to expire in three months or less. Specifically, TRIP's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) is docked at a call-skewed 0.72. Should Tripadvisor Inc extend its downtrend, an unwinding of these short-term call positions could translate into more headwinds for the stock.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI