Analyst Downgrades: Valeant Pharmaceuticals Intl Inc, Intel Corporation, and Transocean LTD

Analysts downwardly revised their ratings and price targets on Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Intel Corporation (NASDAQ:INTC), and Transocean LTD (NYSE:RIG)

Mar 21, 2016 at 10:24 AM
facebook X logo linkedin

Analysts weighed in on pharmaceutical firm Valeant Pharmaceuticals Intl Inc (NYSE:VRX), chipmaker Intel Corporation (NASDAQ:INTC), and oil-and-gas stock Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes on VRX, INTC, and RIG.

  • VRX announced that Mike Pearson will step down as CEO once a replacement has been found, and that activist investor Bill Ackman has been appointed to its board of directors. This follows a recent string of fundamental follies that sent shares of VRX tumbling to a fresh five-year low of $25.99 earlier -- after being halted in electronic trading -- and its 14-day Relative Strength Index (RSI) well into oversold territory. This may be why Valeant Pharmaceuticals Intl Inc has since moved 12.9% higher to $30.47, despite Mizuho Securities cutting its rating to "underperform" from "neutral" and its price target to $18 from $70. Barclays also chimed in, slashing its price target by $101 to $34. However, there's still plenty of room for more analysts to downgrade the embattled stock, should it resume its downtrend, as 41% still maintain a "strong buy" rating.

  • Bernstein lowered its outlook on INTC to "underpeform" from "market perform" and its price target to $26 from $29, citing skepticism over the company's first-quarter results. Additionally, Deutsche Bank cut its price target to $37 from $38. Against this backdrop, shares of INTC are off 2% at $32.03 -- the biggest decliner on the Dow -- and put volume is once again running at an accelerated clip. Widening the scope, over the past 10 sessions, Intel Corporation has racked up a 10-day put/call volume ratio of 3.36 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- in the 92nd percentile of its annual range.

  • RIG saw its price target cut to $9 from $12 at Cowen and Company, sending the shares down 2% to $10.56. Longer term, the stock has shed more than half of its value since hitting an annual high of $21.90 last May -- and notched a new record low of $7.67 in late February. Nevertheless, short-term speculators are more call-heavy now than at any other point in the past year. In fact, Transocean LTD's Schaeffer's put/call open interest ratio (SOIR) of 1.10 sits below all other comparable readings taken in the last 12 months.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI