Valeant Pharmaceuticals, Biogen, Tailored Brands Downgraded

Valeant Pharmaceuticals, Biogen, and Tailored Brands received bearish analyst attention ahead of today's open

Josh Selway
Mar 9, 2017 at 10:15 AM
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Analysts are weighing in on biotech stocks Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Biogen Inc (NASDAQ:BIIB), and Men's Wearhouse parent Tailored Brands Inc (NYSE:TLRD). Here's a quick roundup of today's bearish brokerage notes on VRX, BIIB, and TLRD shares.

Another Bearish Note for Valeant Stock

VRX is down 1.6% this morning to trade at $11.69, after a price-target cut to $12 from $17 at Morgan Stanley. The brokerage firm cited "company-specific risk factors," such as declining business trends and litigation liabilities. This is just the latest in a long line of bearish notes on the stock, which hit another seven-year low of $11.36 two days ago. On the fundamental front, the drugmaker launched a $2.5 billion offering of senior secured notes to help finance outstanding debt. Meanwhile, short interest remains near record levels on Valeant Pharmaceuticals Intl Inc, with roughly 11% of the stock's float sold short. 

Biogen Hit with First "Sell" Rating

BIIB is down 0.6% at $292.23, after UBS called the stock a "sell." This is a very unusual move from the brokerage bunch. Heading into today, 12 of 16 analysts said to buy the shares, four designated them a "hold," while none maintained a "sell" opinion. Biogen Inc has earned this optimism by adding almost 26% year-over-year. Options traders, though, still prefer puts, based on BIIB's 10-day put/call volume ratio of 1.24 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 91% of the past year's readings. 

Tailored Brands Decimated By Earnings, Forecast

TLRD does not like the way it looks this morning, losing 30% to trade at $16.39, following the company's worse-than-expected fourth-quarter earnings report and disappointing full-year forecast. The stock is now on the short-sale restricted list, on pace for its lowest close since November, and below its year-over-year breakeven level. Making matters worse, analysts are cutting their outlooks, with Mizuho downgrading Tailored Brands Inc to "neutral" from "buy," and at least three other brokerage firms lowering their price targets. It seems many traders were betting on the post-earnings sell-off, as short interest surged 33% during the past two reporting periods. 

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