Analysts downwardly revised their ratings and price targets on Alibaba Group Holding Ltd (BABA), Clovis Oncology Inc (CLVS), and Sprint Corp (S)
Analysts are weighing in on China-based online retailer
Alibaba Group Holding Ltd (NYSE:BABA), biotech stock Clovis Oncology Inc (NASDAQ:CLVS), and telecom issue Sprint Corp (NYSE:S). Here's a quick roundup of today's bearish brokerage notes on BABA, CLVS, and S. - CLVS is tanking again after being dealt a blow from the Food and Drug Administration (FDA) and hitting a three-year low yesterday, down 11.8% at $12.57. Making matters worse, JPMorgan Securities lowered its assessment of the stock to "neutral" from "overweight," and slashed its price target to $15 from $42 -- following the lead of Mizuho Securities, which cut its price target to $15 from $21. Although CLVS is on the short-sale restricted list, bears ought to be celebrating today, as 30% of Clovis Oncology Inc's float is sold short -- representing nearly two weeks' worth of trading, at CLVS' typical daily volumes. Likewise, the stock's options pits remain tilted in a bearish direction.
- S saw its rating cut to "underweight" at Pacific Crest, which said the telecom's "2016 guidance should not be taken at face value," adding "the company has a long turnaround ahead of it." Sprint Corp is off 3.7% at $3.36, extending its year-to-date deficit beyond 7%. Pacific Crest is far from the only brokerage firm seeing dark clouds ahead for the shares. Of the 18 analysts following S, 16 have handed out "hold" or worse ratings. On top of that, nearly 31% of the stock's float is sold short, and would take more than two weeks to cover, at its average daily trading levels.
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