Amgen, Spirit Airlines, American Airlines Downgraded

Amgen, Spirit Airlines, and American Airlines received bearish analyst attention ahead of today's open

Mar 20, 2017 at 10:01 AM
facebook twitter linkedin

Analysts are weighing in on drug stock Amgen, Inc. (NASDAQ:AMGN), as well as airlines Spirit Airlines Incorporated (NASDAQ:SAVE) and American Airlines Group Inc (NASDAQ:AAL). Here's a quick roundup of today's bearish brokerage notes on AMGN, SAVE, and AAL shares.

Amgen Stock Widens Repatha Loss After Price-Target Cut

Goldman Sachs lowered its price target on AMGN to $202 from $208, after the shares fell more than 6% on Friday, as investors questioned the trial results for Amgen, Inc.'s cholesterol drug Repatha. While the stock found a foothold atop its rising 50-day moving average, it's trading down 0.1% today at $168.39 -- paring its year-to-date advance to 15.2%. On the sentiment front, most analysts are sitting on the sidelines when it comes to AMGN stock, with nine of 15 maintaining a tepid "hold" rating, with not a single "sell" to be found.

Spirit Airlines Shares Widen 2017 Deficit After Bearish Notes

SAVE shares are trading down 0.9% at $50.45, after receiving price-target cuts from Morgan Stanley (to $54) and Cowen and Company (to $58). This is just more of the same for the stock, which has shed nearly 12% in 2017, and recently fell below its rising 120-day moving average. Should Spirit Airlines Incorporated continue to struggle, there's plenty of room for analysts to continue to issue bearish brokerage notes. Currently, 60% of those covering the shares deem them a "strong buy" -- and not one recommends selling SAVE stock. Plus, the average 12-month price target of $64.08 stands at a steep 27% premium to present trading levels, and rests in territory not charted since July 2015.

American Airlines Trades Lower After Cowen Cuts Price Target

Cowen and Company also weighed in on AAL, lowering its price target on the shares to $46 from $49. This comes after an 10% year-to-date slide for AAL shares, though the stock last seen trading up 0.5% at $41.91. Options traders, meanwhile, have kept the faith in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), American Airlines Group Inc's 50-day call/put volume ratio of 3.80 ranks in the elevated 77th annual percentile. Simply stated, calls have been bought to open over puts at a faster-than-usual clip. An unwinding of this optimism in the face of AAL's continued slide could translate into headwinds for the shares.

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.

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!