Analyst Update: Depomed, LivePerson, and YY Inc.

Analysts adjusted their ratings on Depomed Inc (NASDAQ:DEPO), LivePerson, Inc. (NASDAQ:LPSN), and YY Inc (ADR) (NASDAQ:YY)

May 12, 2015 at 12:42 PM

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Analysts are weighing in today on drugmaker Depomed Inc (NASDAQ:DEPO), digital engagement specialist LivePerson, Inc. (NASDAQ:LPSN), and social communication platform YY Inc (ADR) (NASDAQ:YY). Here's a quick look at today's brokerage notes on DEPO, LPSN, and YY.

RBC cut its price target on DEPO to $26 from $29 while underscoring an "outperform" rating, after the firm revealed a wider-than-forecast first-quarter loss. At last check, the shares of Depomed Inc were 17.7% lower at $20.09, paring the stock's year-to-date lead to 24.7%. Short sellers are likely cheering today's negative price action, as short interest on DEPO rose 6% over the last two reporting periods. Shorted shares now account for about 20% of the stock's available float, which would take seven sessions to cover, at average trading volumes. Of course, given today's big drop, DEPO is currently on the short-sale restricted (SSR) list. Elsewhere, the brokerage bunch is generally optimistic on DEPO, as 80% of covering analysts rate it a "buy" or "strong buy."

The shares of LPSN are 12.2% lower at $8.31 -- and earlier touched a two-year low of $8.10 -- after the firm cut its 2015 revenue forecast. In response, no fewer than four brokerage firms doled out negative notes on the stock -- including Credit Suisse, which downgraded its rating to "neutral" from "outperform" while slashing its price target to $8 from $19. Similarly, Roth Capital cut its target to $14 from $23, saying, "growth and earnings will ... suffer significant pressure near-term" due to the loss of key client AT&T Inc. (NYSE:T). Technically speaking, today's bearish gap is more of the same for LivePerson, Inc., as the shares have retreated over 41% year-to-date. What's more, the post-earnings sell-off has earned the stock a spot on the SSR list, alongside DEPO. Heading into today's session, the analyst community was divided on LPSN, as half of covering analysts rated it a "strong buy," with the remaining half doling out "hold" opinions.

It's a similar story for YY, which woke up to a pair of negative brokerage notes after the company's first-quarter earnings failed to meet the Street's expectations. Specifically, Pacific Crest cut its price target to $80 from $91, while Piper Jaffray slashed its target to $88 from $109. (Both brokerage firms kept their "overweight" opinions on the stock.) On the charts, the shares of YY Inc have fallen 6.5% today -- last seen at $64.46 -- trimming their year-to-date lead to just 3.4%. The stock is now testing support at its 20-day moving average, which hasn't been breached on a daily closing basis since late March. Looking to the options pits, speculators were apparently bracing for a negative earnings reaction, as YY's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.23 stands in the 92nd annual percentile.

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