Analyst Downgrades: Twitter Inc, Keysight Technologies Inc, and Cerulean Pharma Inc

Analysts downwardly revised their ratings and price targets on Twitter Inc (NYSE:TWTR), Keysight Technologies Inc (NYSE:KEYS), and Cerulean Pharma Inc (NASDAQ:CERU)

Aug 18, 2016 at 9:26 AM
facebook twitter linkedin

Analysts are weighing in microblogging platform Twitter Inc (NYSE:TWTR), electronic equipment specialist Keysight Technologies Inc (NYSE:KEYS), and biotech stock Cerulean Pharma Inc (NASDAQ:CERU). Here's a quick roundup of today's bearish brokerage notes on TWTR, KEYS, and CERU.

  • Evercore ISI downgraded its outlook on TWTR to "sell" from "hold" and lowered its price target to $17 from $18, saying it sees more risk than reward in the stock due to increasing competition from Instagram and Snapchat. While shares of TWTR are down 2.6% ahead of the bell, they could find a foothold atop the round $20 mark. This area resisted Twitter Inc's early March advance, but has served as support this week in the wake of Monday's big pop, and coincides with a hefty amount of put open interest in the soon-to-expire August series. Longer term, TWTR has been bouncing back since hitting a record low of $13.73 in late May, up 47% to close last night at $20.17.

  • KEYS is 9% lower in electronic trading, after the company reported a fiscal third-quarter revenue miss and disappointing current-quarter guidance. While CEO Ron Nersesian cited continued "market headwinds" and "economic concerns in Europe," Goldman Sachs weighed in by lowering its price target to $24 from $25. More broadly speaking, the stock has jumped almost 41% since tapping an all-time low of $21.07 in mid-February, and closed last night at $29.68. Short-term options traders, meanwhile, are more put-heavy than usual. Keysight Technologies Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.52 ranks in the 67th annual percentile.

  • After being briefly halted in electronic trading last night, CERU is bracing for a 63% plunge out of the gate, and a trip into record-low territory. The drugmaker released disappointing mid-stage trial results for its cancer treatment -- CRLX101 -- which just recently received "fast track" status at the Food and Drug Administration (FDA), and analysts were quick to chime in. Specifically, the stock was downgraded to the equivalent of a "neutral" at JMP Securities, Janney, and Leerink, with the latter two, as well as Roth Capital and Canaccord Genuity, lowering their price targets. Since topping out at a year-to-date high of $4.33 in late April, shares of CERU have shed almost 37%, and settled last night at $2.74. Short sellers, meanwhile, have been bracing for additional losses. In the past two reporting periods, short interest on Cerulean Pharma Inc shot up 17%.
Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!