Rite Aid, Opus Bank, Teva Pharmaceutical Downgraded

Analysts downwardly revised their ratings and price targets on pharmacy chain Rite Aid Corporation (RAD), bank stock Opus Bank (OPB), and generic drugmaker Teva Pharmaceutical Industries Ltd (ADR) (TEVA)

Jan 31, 2017 at 10:13 AM
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Analysts are weighing in on pharmacy chain Rite Aid Corporation (NYSE:RAD), bank stock Opus Bank (NASDAQ:OPB), and generic drugmaker Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Here's a quick roundup of today's bearish brokerage notes on RAD, OPB, and TEVA.

Rite Aid Price Target Cut at Mizuho

RAD sold off yesterday, after Walgreens Boots Alliance Inc (NASDAQ:WBA) lowered its offer price for Rite Aid Corporation by at least $2 billion, citing regulatory hurdles. As such, the stock's 14-day Relative Strength Index (RSI) closed at 19. And despite a brief trek into the green earlier, RAD was more recently seen extending its trek into oversold territory -- down fractionally at $5.71, and fresh off a two-year low of $5.68 -- after a price-target cut from Mizuho to $6.75 from $9. Mizuho said it would "update our model and our price target for RAD post the deal close."

Opus Bank Bear Gap Draws Negative Analyst Attention

Monday's post-earnings bear gap inspired a round of negative analyst attention for OPB overnight. Specifically, the stock was downgraded to "neutral" from "overweight" at J.P. Morgan Securities, although the brokerage firm upped its price target to $22 from $18.50. KBW and Sandler O'Neill, meanwhile, each lowered their price targets, to $23 and $22, respectively. OPB entered 2017 with a swift rejection from its 120-day moving average, and is down 33% year-to-date -- including today's 1% drop that has the stock trading at $20.20. The stock could feel even more pressure, should short sellers continue to climb on board. Short interest jumped 16% in the two most recent reporting periods, but accounts for just 5% of Opus Bank's available float.

Teva Pharmaceutical Down On Copaxone Blow

TEVA is down 5.1% at $32.77, after a U.S. District Court rejected four of its five patent infringement claims for its multiple sclerosis drug, Copaxone. In addition, TEVA shares were hit with a trio of price-target cuts from Goldman Sachs, Barclays, and Leerink, to $35, $38, and $39, respectively. However, BofA-Merrill Lynch upgraded the shares to "buy" from "neutral." Today's blow is the latest for the biotech, which is down 47% year-over-year -- and not far from its Jan. 23 nine-year low of $32.11 -- with a recent rally attempt rejected by its 50-day moving average. Meanwhile, TEVA's Schaeffer's put/call open interest ratio (SOIR) of 1.14 sits just 2 percentage points from an annual peak, indicating near-term traders have rarely been more put-skewed over the last 12 months.

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