Analyst Downgrades: Fiat Chrysler Automobiles NV, Valeant Pharmaceuticals Intl Inc, and Emerson Electric Co.

Analysts downwardly revised their ratings and price targets on Fiat Chrysler Automobiles NV (FCAU), Valeant Pharmaceuticals Intl Inc (VRX), and Emerson Electric Co. (EMR)

Aug 19, 2016 at 10:27 AM
facebook X logo linkedin

Analysts are weighing in automaker Fiat Chrysler Automobiles NV (NYSE:FCAU), biotech stock Valeant Pharmaceuticals Intl Inc (NYSE:VRX), and factory automation concern Emerson Electric Co. (NYSE:EMR). Here's a quick roundup of today's bearish brokerage notes on FCAU, VRX, and EMR.

  • Goldman Sachs waxed pessimistic on a handful of automakers this morning, including FCAU, which saw its price target trimmed to $8 from $8.30. The brokerage firm said it sees "clouds on the horizon" for the industry, said the demand cycle in the U.S. is at its peak, and noted a "13% probability of a severe downturn" for the sector. The shares of Fiat Chrysler Automobiles NV were last seen 3.2% lower at $6.59, bringing their year-to-date loss to 27.7%. Short sellers are betting on more downside for FCAU, as these bearish bets would take nearly eight sessions to buy back, at the equity's average pace of trading.
  • VRX is 0.4% lower at $29.30, extending yesterday's swoon that stemmed from a major shareholder lawsuit. Meanwhile, Piper Jaffray reiterated its "underweight " rating and paltry $22 price target, saying that even Valeant Pharmaceuticals Intl Inc's newly amended credit facility "does not render VRX investable." In addition, the analyst said "VRX's implied expectations for a significant 2H16 recovery is overly optimistic." Still, VRX boasts a month-to-date gain of 30%, thanks to a well-received outlook and plans to reorganize, as well as optimism over the aforementioned credit amendment. As with Piper Jaffray, most analysts remain skeptical, with nine out of 13 maintaining "hold" or worse recommendations.
  • EMR is sitting on a 3.9% loss at $52.57, after the company agreed to buy the valves and controls unit of Pentair plc Ordinary Share (NYSE:PNR) for $3.15 billion in cash. In response, Buckingham Research downgraded EMR to "underperform" from "neutral," and cut its price target to $44 from $49. Likewise, Credit Suisse revised its rating to "neutral" from "outperform." Emerson Electric Co. is no stranger to skepticism, though, as just three out of 17 brokerage firms offer up "buy" or better endorsements. The shares of EMR recently backed down from resistance in the formerly supportive $56 region, but could find support atop their ascending 32-week moving average
Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI