Analyst Downgrades: FireEye Inc, Novo Nordisk A/S, and Bristol-Myers Squibb Co

Analysts downwardly revised their ratings and price targets on FireEye Inc (NASDAQ:FEYE), Novo Nordisk A/S (ADR) (NYSE:NVO), and Bristol-Myers Squibb Co (NYSE:BMY)

Josh Selway

Aug 8, 2016 at 10:21 AM

Analysts are weighing in on cybersecurity stock FireEye Inc (NASDAQ:FEYE), as well as drugmakers Novo Nordisk A/S (ADR) (NYSE:NVO) and Bristol-Myers Squibb Co (NYSE:BMY). Here's a quick roundup of today's bearish brokerage notes on FEYE, NVO, and BMY.

Coming off a post-earnings collapse, FEYE is down another 2.6% this morning at $14.35. Wunderlich downgraded the stock's rating earlier to "hold" from "buy," and Barclays last night trimmed its price target to $16 from $19. FireEye Inc is vulnerable to additional bearish notes, too, considering 10 of the 21 covering brokerage firms still rate it a "strong buy." Aside from a few M&A-inspired pops, FEYE has struggled on the charts this year, dropping 31%.

Analysts are pummeling NVO, after the company late last week issued a worrisome full-year outlook. On top of multiple price-target reductions, BofA-Merrill Lynch and Nordea downgraded their assessments of the stock to the equivalent of a "hold" from a "buy," while Handelsbanken lowered its opinion to "accumulate" from "buy." Breaking with the pack, though, Swedbank raised its rating to "buy" from "neutral." Novo Nordisk A/S was last seen 4.7% lower at $47.54, meaning it's now lost almost 17% in August alone. Options traders appear well-positioned for the sell-off, though, with NVO sporting a 10-day put/call volume ratio of 4.44 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a reading just 9 percentage points from an annual high.

BMY is also adding to last week's historic drug-induced drop. Not only is the stock getting hit with damaging news from this competitor, but Credit Suisse downgraded its opinion to "neutral" from "outperform." The brokerage firm was also one of at least seven to lower its price target, cutting it to $63 from $86. As such, Bristol-Myers Squibb Co is 2.7% lower at $61.57, though this area served as a foothold last Friday and earlier this year. Combined with the fact that the stock's 14-day Relative Strength Index (RSI) plummeted to 22 last Friday -- well into oversold territory -- the shares could be primed for a near-term bounce. Still, BMY's recent struggles are great news for short sellers, since short interest grew by 8.7% in the last reporting period.

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