Analyst Downgrades: Perrigo Company plc, Sarepta Therapeutics Inc, and First Solar, Inc.

Analysts downwardly revised their ratings and price targets on Perrigo Company plc Ordinary Shares (PRGO), Sarepta Therapeutics Inc (SRPT), and First Solar, Inc. (FSLR)

Apr 26, 2016 at 9:27 AM
facebook twitter linkedin

Analysts are weighing in on biotech stocks Perrigo Company plc Ordinary Shares (NYSE:PRGO) and Sarepta Therapeutics Inc (NASDAQ:SRPT), as well as solar energy interest First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bearish brokerage notes on PRGO, SRPT, and FSLR.

  • PRGO is set to drop 0.6% at the bell after Monday's C-suite news and resultant three-year low were met with a round of bearish brokerage notes. Specifically, Jefferies downgraded the stock's rating to a "hold," and was one of at least six analysts that lowered its price target on Perrigo Company plc Ordinary Shares. Goldman Sachs set the lowest target, at $95 -- a level the shares haven't seen in more than four years. After closing at $99.40 on Monday, PRGO is on pace to hit another low out of the gate. Despite the stock's recent troubles, near-term options traders are close to a call-skewed extreme. PRGO holds a Schaeffer's put/call open interest ratio (SOIR) of 0.63 -- lower than 99% of the past year's readings.
  • A U.S. Food and Drug Administration (FDA) panel officially voted to reject SRPT's Duchenne muscular dystrophy (DMD) drug, sending shares of Sarepta Therapeutics Inc plummeting 46% in pre-market trading. To make matters worse, at least five analysts dished out bearish notes on SRPT. In fact, SunTrust Robinson slashed its rating to "reduce" from "neutral," and lowered its target to $4 from $14 -- representing three-year-low territory for the shares, which sat halted Monday at $14.95. With the stock giving up well over half of its value already this year, it's little surprise that short interest has been running high. These bearish bets currently account for more than six sessions' worth of trading, at SRPT's average daily volume.
  • Deutsche Bank cut its price target on FSLR to $80 from $86 ahead of First Solar, Inc.'s quarterly earnings report, due after the close tomorrow. The shares are shaking off the negative attention so far, unchanged in electronic trading, after settling at $60.39 on Monday. The stock is down 8.5% in 2016, but recently found a foothold atop its rising 160-day moving average. And while long calls outnumber puts in FSLR's options pits, traders have been unusually bearish in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 0.79 ranks above 84% of the past year's readings. An unwinding of this pessimism after earnings could lead to a rally for the shares.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners