Analyst Downgrades: TransEnterix, Inc., Chiasma Inc, and Calumet Specialty Products Partners, L.P.

Analysts downwardly revised their ratings and price targets on TransEnterix, Inc. (NYSEMKT:TRXC), Chiasma Inc (NASDAQ:CHMA), and Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT)

by Josh Selway

Published on Apr 18, 2016 at 10:14 AM

Analysts are weighing in on medical device stock TransEnterix, Inc. (NYSEMKT:TRXC), biotech stock Chiasma Inc (NASDAQ:CHMA), and refining specialist Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT). Here's a quick roundup of today's bearish brokerage notes on TRXC, CHMA, and CLMT.

  • TRXC is down 8.6% at $4.95 this morning, after BTIG lowered its opinion on the stock to "neutral." This is a change a pace for the shares, with anticipation for a crucial Food and Drug Administration (FDA) decision driving TransEnterix, Inc. to annual highs earlier this month. The stock closed Friday at $5.42, after almost tripling the S&P 500 Index's (SPX) three-month return, on a relative-strength basis. As such, BTIG's bearish note is a rare development on Wall Street. In fact, every other brokerage firm covering TRXC recommends buying it. 
  • The FDA is not ready to approve CHMA's oral treatment for acromegaly -- as many suspected. More specifically, the FDA noted in its response letter that Chiasma Inc did not provide enough evidence to gain approval, and would need to perform another clinical trial. The stock has already lost over 60% of its value this morning to hit $4.03, earlier touching a record low of $3.93. What's more, William Blair just reduced its outlook to "market perform," while Oppenheimer weighed in overnight by slashing its price target by $34 to $9. More bearish notes could be on the horizon for CHMA, since its average 12-month price target stands at $30.25. 
  • CLMT has also lost roughly half its value this morning to hit an all-time low of $4.90, last seen at $5.56. The sell-off comes after the company on Friday announced a dismal first-quarter outlook and a suspended dividend. No fewer than six brokerage firms have responded with negative notes, including RBC. The brokerage firm reduced its rating on Calumet Specialty Products Partners, L.P. to "sector perform" from "outperform," and cut its price target to $7 from $22, while saying the company's cash distribution likely won't come back until 2018. Meanwhile, CLMT's Schaeffer's put/call open interest ratio (SOIR) of 1.53 sits in the top percentile of its annual range, meaning short-term speculators are more put-heavy now than they've been at any other point during the past year. 
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