Analyst Downgrades: Shake Shack Inc, Pfizer Inc., and Valeant Pharmaceuticals Intl Inc

Analysts downwardly revised their ratings and price targets on Shake Shack Inc (NYSE:SHAK), Pfizer Inc. (NYSE:PFE), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

by Josh Selway

Published on Mar 8, 2016 at 9:27 AM
Updated on Mar 8, 2016 at 9:29 AM

Analysts are weighing in on burger joint Shake Shack Inc (NYSE:SHAK), as well as drugmakers Pfizer Inc. (NYSE:PFE) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Here's a quick roundup of today's bearish brokerage notes on SHAK, PFE, and VRX.

  • SHAK's fourth-quarter earnings and revenue topped Wall Street's expectations, but the company's sales guidance disappointed. The stock is now off by 9% ahead of the open -- not the news call buyers wanted to hear. Barclays has since cut its price target to $40 from $48, though it's not uncommon to see analysts take the bearish route. Specifically, six of the seven brokerages that cover Shake Shack Inc say it's a "hold" or "strong sell." More recently, the stock had been performing well, gaining nearly 41% since bottoming at $30 in mid-January to trade at $42.23. 
  • PFE is moving lower in electronic trade following a price-target cut to $42 from $45 at Jefferies. The shares have underwhelmed in 2016, losing 7.7% to trade at $29.79, but option traders continue to bet bullishly. Specifically, more than two Pfizer Inc. calls have been bought to open for every put during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The shares could encounter headwinds if these bulls hit the exits amid PFE's ongoing technical struggles. 
  • VRX continues to get battered by bearish analysts notes. Today, it's Mizuho that's weighing in, dropping the stock's price target to $70 from $112, and sending the shares 0.3% south in pre-market trading. VRX has plummeted over 35% year-to-date at $65.66, pressured by a slew of negative developments -- but speculators remain bullish ahead of the company's earnings release next Tuesday morning. By the numbers, Valeant Pharmaceuticals Intl Inc's 50-day call/put volume ratio of 1.35 at the ISE, CBOE, and PHLX tops 71% of all readings from the past year. 
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