Analyst Downgrades: KemPharm Inc, Endo International plc, and FireEye Inc

Analysts downwardly revised their ratings and price targets on KemPharm Inc (KMPH), Endo International plc - Ordinary Shares (ENDP), and FireEye Inc (FEYE)

May 6, 2016 at 10:19 AM
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Analysts are weighing in on drugmakers KemPharm Inc (NASDAQ:KMPH) and Endo International plc - Ordinary Shares (NASDAQ:ENDP), as well as cybersecurity stock FireEye Inc (NASDAQ:FEYE). Here's a quick roundup of today's bearish brokerage notes on KMPH, ENDP, and FEYE.

  • KMPH has plummeted 50% to $7.89 -- and just notched a new record low of $6.88 -- after a U.S. Food and Drug Administration (FDA) committee voted to approve the firm's painkiller Apadaz, but rejected a motion to include abuse-deterrent labeling on the drug. The news prompted RBC and Oppenheimer to cut their price targets on the equity to $14 and $11, respectively, while Cowen said the absence of the label could make the product "less differentiated in the market." KemPharm Inc now sits on a 60% year-to-date loss, with the company's first-quarter earnings report just around the corner, due next Thursday evening. The stock could be in for even more trouble, should analysts lower their ratings -- presently, not one of the four brokerages providing coverage rates KMPH worse than a "buy."
  • ENDP is also falling hard, down 35.9% at $17.04, after hitting a new six-year low of $16.60. The company's first-quarter earnings beat analysts' estimates, but Endo International plc offered a dismal full-year outlook on "unanticipated" headwinds. This led Leerink, Piper Jaffray, and RBC to downgrade the stock's rating to the equivalent of "hold," while Mizuho Securities cut its rating to "underperform" from "neutral." No fewer than 12 brokerage firms have lowered their price targets on ENDP, as well. The shares hit a record high of $96.58 just over a year ago, but have been on a steady downward trajectory ever since, off 80% year-over-year. While today's huge drop has the security on the short-sale-restricted list, some recent short sellers may be wishing they had held onto their positions a little longer. Short interest on ENDP dropped by about 35% during the two most recent reporting periods, and now accounts for just 3.4% of the stock's float.
  • FEYE has sunk 18.1% to $13.09 on a round of price-target cuts from at least 10 analysts, with UBS and Wedbush setting the lowest targets, at $16. The company reported a slimmer-than-expected first-quarter loss, but revenue for the three-month period fell short of predictions. Recent option bulls could be scrambling today -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FireEye Inc's 10-day call/put volume ratio of 5.37 ranks higher than 81% of all readings taken in the past year.
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