Analyst Downgrades: Yelp, Baidu, Agios Pharmaceuticals

Analysts downwardly revised their rating on Yelp Inc (NYSE:YELP), Baidu Inc (ADR) (NASDAQ:BIDU), and Agios Pharmaceuticals Inc (NASDAQ:AGIO)

Apr 30, 2015 at 9:31 AM
facebook twitter linkedin


Analysts are weighing in today on online review platform Yelp Inc (NYSE:YELP), Chinese Internet provider Baidu Inc (ADR) (NASDAQ:BIDU), and biopharmaceutical firm Agios Pharmaceuticals Inc (NASDAQ:AGIO). Here's a quick roundup of today's bearish brokerage notes on YELP, BIDU, and AGIOS.

  • The shares of YELP are 16.5% lower in pre-market trading -- and poised to explore annual lows -- after the company's first-quarter earnings and current-quarter guidance failed to meet the Street's expectations. In response, no fewer than 14 brokerage firms lowered their price-targets and/or ratings on Yelp Inc, with the largest cuts coming from Evercore ISI (to $41) and Baird (to $46). YELP had already been a technical underperformer heading into today's session, with the shares down 6.3% year-to-date to settle Wednesday at $51.28. However, short-term traders have been more call-heavy than usual, as YELP's Schaeffer's put/call open interest ratio (SOIR) of 0.67 is lower than 74% of all similar readings from the past year. A mass exodus of option bulls could exacerbate selling pressure on the stock.
  • It's a similar story for the shares of BIDU, down 3.3% ahead of the bell, after the firm posted mediocre first-quarter revenue growth. Reacting were Piper Jaffray and Pacific Crest, which lowered their price targets to $230 and $255, respectively -- though both brokerage firms reaffirmed their "overweight" ratings. On the charts,Baidu Inc (ADR) has taken a step back recently, with the shares down 13.1% from their Nov. 13 all-time high of $251.99 to close yesterday at $219. What's more, the shares have struggled beneath their 200-day moving average, which has acted as a level of resistance since February. Accordingly, puts have been prominent in the options pits, as BIDU's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.66 ranks in the 99th percentile of its annual range. Elsewhere, 12 out of 13 covering analysts rate the stock a "strong buy."
  • Canaccord Genuity lowered its price target on AGIO to $103 from $163 while downgrading its rating to "hold" from "buy," citing concerns over the drugmaker's glioma drug AG-120. Specifically, the brokerage firm said, "Agios will present data for AG-120 in solid tumors by 2H15, which we believe may only show modest benefit in these patients ... Therefore, we decrease our probability of success for AG-120 in glioma to 30% from 80%." At last check, the shares of Agios Pharmaceuticals Inc -- which closed at $99.32 last night -- were down 2.9% in electronic trading. Year-to-date, the shares are down 11.4%. Despite this downtrend, traders have preferred calls over puts ahead of AGIO's trip to the earnings confessional on May 7. Over the past 10-days at the ISE, CBOE, and PHLX, 3.71 AGIO calls have been bought to open for every put.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1