Analyst Downgrades: DreamWorks, Exxon Mobil, Momenta

Analysts downwardly revised their ratings on Dreamworks Animation Skg Inc (DWA), Exxon Mobil Corporation (XOM), and Momenta Pharmaceuticals, Inc. (MNTA)

Jan 23, 2015 at 9:22 AM
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Analysts are weighing in today on entertainment issue Dreamworks Animation Skg Inc (NASDAQ:DWA), commodity concern Exxon Mobil Corporation (NYSE:XOM), and generic drugmaker Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). Here's a quick roundup of today's bearish brokerage notes on DWA, XOM, and MNTA.

  • DWA is down 13% in electronic trading, following a big announcement from the firm. Specifically, Dreamworks Animation Skg Inc will axe roughly 500 positions, reduce its yearly film output, and shake-up its current management structure. The news was met with a downgrade to "underperform" from "market perform" and a price-target cut to $14 from $21 at Cowen and Company, while Janney reduced its outlook to "sell" from "neutral." Piper Jaffray, however, raised its rating on DWA to "overweight" from "neutral." The security has been a long-term laggard, shedding nearly 38% over the past 52 weeks amid pressure from its 40-week moving average, and settled last night at $21.31. Short sellers have been rolling the dice on more downside, too. Short interest surged 18.1% during the last two reporting periods, and now accounts for nearly 15% of the security's available float.

  • It's been a rough ride for XOM in recent months, with the shares off more than 11% from their late-July record peak of $104.76 to trade at $92.87. This -- as well as crude oil's continued slump -- may have been what prompted Credit Suisse to lower its rating to "underperform" from "neutral." This negative outlook is seen elsewhere on the Street, as well. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, XOM's 10-day put/call volume ratio of 3.04 ranks in the 94th percentile of its annual range. Simply stated, Exxon Mobil Corporation puts have been bought to open over calls with more rapidity just 6% of the time within the past year.

  • It's been a tough week for MNTA -- which is down nearly 11% from last Friday's close, after being dealt a blow by the Supreme Court on Tuesday. This equity is poised to extend these losses today, following a downgrade to "hold" from "sell" and a price-target cut to $7 from $17 at Maxim. There's plenty of room for another round of bearish brokerage notes for a stock that's shed more than 42% year-over-year. All four analysts covering Momenta Pharmaceuticals, Inc. maintain a "strong buy" rating. Plus, the average 12-month price target of $15.44 stands at a 38% premium to last night's close at $11.19, as well as in territory not charted since last March.

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