Analyst Downgrades: Esperion Therapeutics Inc, Nike Inc, and Autoliv Inc.

Analysts downwardly revised their ratings and price targets on Esperion Therapeutics Inc (ESPR), Nike Inc (NKE), and Autoliv Inc. (ALV)

by Celeste Taylor

Published on Jun 29, 2016 at 10:15 AM

Analysts are weighing in on biotech Esperion Therapeutics Inc (NASDAQ:ESPR), athletic apparel retailer Nike Inc (NYSE:NKE), and auto parts stock Autoliv Inc. (NYSE:ALV). Here's a quick roundup of today's bearish brokerage notes on ESPR, NKE, and ALV.

  • ESPR is down 39.1% at $9.85 -- a new all-time low -- after receiving a disappointing Food and Drug Administration (FDA) update for its cholesterol drug. As tends to happen, since the announcement, no fewer than three brokerage firms have downgraded Esperion Therapeutics Inc, including a revision to "underperform" at Credit Suisse. Likewise, at least four analysts have issued price-target cuts, with J.P. Morgan Securities slashing its target to $15 from $50.  This is the latest bad news for a stock that has dropped by 87% year-over-year. Option bears are likely cheering the latest development, with ESPR's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 0.70 sitting higher than 92% of all other readings from the past year.
  • NKE is up 2.4% at $54.36, after a mixed earnings report. Although shareholders seem to be cheering, NKE shares received some more negative analyst attention, with no fewer than 10 brokerage firms issuing price-target cuts, including D.A. Davidson, which slashed Nike Inc's price target to $66 from $76. NKE is down 12.6% year-to-date, with rally attempts running into resistance at its 30-day moving average since early April. Still, prior to today, most analysts seemed upbeat on the athletic apparel retailer, with 17 of 23 rating shares a "buy" or better, and only a single "sell" to be found. 
  • ALV is down 4.2% at $105.56, after confirming reports that its airbag inflators would be involved in Toyota Motor Corp's (ADR) (NYSE:TM) recalls. Even before ALV's announcement, Deutsche Bank and Evercore issued price-target cuts for the stock, to $102 and $100, respectively. RBC, meanwhile, cut its price target to $93 from $107 -- in annual-low territory -- echoing the negative tone in the auto sector today. The struggling shares are down 15% year-to-date, and even prior to today, Autoliv Inc. had underperformed the greater S&P 500 Index (SPX) by over 8 percentage points. 
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