Analyst Update: Zafgen, Ubiquiti Networks, Visa

Analysts adjusted their ratings on Zafgen Inc (ZFGN), Ubiquiti Networks Inc (UBNT), and Visa Inc (V)

Oct 19, 2015 at 1:42 PM

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Analysts are weighing in today on biopharmaceutical firm Zafgen Inc (NASDAQ:ZFGN), tech concern Ubiquiti Networks Inc (NASDAQ:UBNT), and credit card company Visa Inc (NYSE:V). Here's a quick roundup of today's brokerage notes on ZFGN, UBNT, and V.

After plummeting to a new all-time low on Friday, ZFGN is back in the news today, after receiving a price-target cut to $25 from $47 at Suntrust Robinson. The stock has once again rebounded despite the news, tacking on 10% to trade at $11.39. As a result of last week's plunge, ZFGN racked up a 14-day Relative Strength Index (RSI) of 25 -- in oversold territory, suggesting today's bounce may have been in the cards. Still, Zafgen Inc's analyst coverage leaves room for further downside; all five of the brokerages covering ZFGN maintain "buy" or better stances. Downgrades from this bullish bunch could exacerbate recent selling pressure on ZFGN.

UBNT is 6% lower at $32.12, due to a downgrade to "market underperform" from "market perform" at JMP Securities. "We believe Ubiquiti's entry into the solar market has high execution risk and we do not believe the company's new wireless product announcements will lead to significant competitive gains or major catalysts," the analysts said. Technically, shares of Ubiquiti Networks Inc are teetering on support in the $31-$32 region, which has contained pullbacks since mid-June. Today's downgrade is nothing new for UBNT, which sports eight tepid "holds" and two "sell" or worse opinions, with nary a "buy" in sight. Option players are similarly bearish, with UBNT's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) at 12.73 -- a 52-week high.

V jumped to a new all-time high of $77.32, and was last seen 1.2% higher at $76.92, following price-target hikes from two brokerages. Oppenheimer raised Visa Inc's target to $85 from $81, and Deutsche Bank elevated V's target to $91 from $79 -- both in uncharted territory for the blue chip. On a year-to-date basis, Visa Inc has gained 17.7%, yet short interest still represents seven sessions' worth of pent-up buying demand, at the stock's average pace of trading. A short squeeze could add fuel to the equity's fire.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Potash Corporation of Saskatchewan (USA), Garmin Ltd., and Nike Inc and Analyst Downgrades: GoPro Inc, SolarCity Corp, and BlackBerry Ltd.

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