Analyst Downgrades: Juniper Networks, Pier 1, and Mirati

Analysts downwardly revised their ratings and price targets on Juniper Networks, Inc. (NYSE:JNPR), Pier 1 Imports Inc (NYSE:PIR), and Mirati Therapeutics, Inc. (NASDAQ:MRTX)

Josh Selway

Jun 1, 2015 at 9:24 AM

Analysts are weighing in today on networking specialist Juniper Networks, Inc. (NYSE:JNPR), furniture retailer Pier 1 Imports Inc (NYSE:PIR), and biopharmaceutical concern Mirati Therapeutics, Inc. (NASDAQ:MRTX). Here's a quick roundup of today's bearish brokerage notes on JNPR, PIR, and MRTX.

JNPR is off 1.4% ahead of the open, after MKM Partners cut its outlook on the shares to "sell" from "neutral." The downgrade comes despite the equity's 24.6% year-to-date climb to $27.80, or the stock's annual high of $28.26, tagged just last week amid M&A rumors. Most analysts have taken a skeptical approach, with 16 of 24 brokerage firms deeming Juniper Networks, Inc. a "hold." Conversely, option traders have been decidedly bullish on the stock. Over the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), nearly 66 calls have been bought to open for every put. This 10-day call/put volume ratio of 65.72 stands higher than all similar readings from the past year.

Wedbush weighed in on PIR this morning, lowering its grade to "neutral" from "outperform," while also reducing its price target to $12 from $16. The shares have already given back almost 28% in the past 12 months to settle at $12.71 on Friday. Put players have since stepped up, with Pier 1 Imports Inc's Schaeffer's put/call open interest ratio (SOIR) registering at 5.16, meaning put open interest is five times that of call open interest among options that expire in the next three months. Plus, this reading is only 1 percentage point from an annual high, telling us that PIR's near-term option traders are way more put-skewed than normal.

MRTX is getting annihilated in electronic trading, pointed 20% lower. Traders are reacting to a bearish note from Brean Capital, which lowered its rating to "hold" from "buy," citing lackluster data on MRTX's lung cancer drug. (On the flip side, the stock scored price-target hikes from Jefferies and Wedbush.) The anticipated drop would certainly mark a change of pace for Mirati Therapeutics, Inc., as it has nearly doubled in 2015, hitting an all-time high of $37.43 on Friday, before closing at $36.66.

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