Pfizer, Valero Energy, Forterra Downgraded

PFE stock could find support after a negative analyst note

May 16, 2017 at 10:01 AM
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Analysts are weighing in on blue-chip pharmaceutical stock Pfizer Inc. (NYSE:PFE), oil-and-gas issue Valero Energy Corporation (NYSE:VLO), and pipe maker Forterra Inc (NASDAQ:FRTA). Here's a quick roundup of today's bearish brokerage notes on shares of PFE, VLO, and FRTA.

PFE Stock Could Find Support After Downgrade

Pfizer stock was slapped with a downgrade to "sell" from "neutral" at Citigroup, which also sliced its price target to $31 from $38. The stock could find support atop its year-to-date breakeven mark and 36-month moving average, or from partner Sangamo Therapeutics -- whose shares are trading higher after its hemophilia A treatment received fast-track status from the Food and Drug Administration (FDA). At last check, PFE shares were trading down 1.4% at $32.65, and in early options trading, calls are outpacing puts 2-to-1.

VLO Stock Downgraded at Goldman

Goldman Sachs downgraded Valero to "neutral" from "buy," saying it sees the risk/reward on the energy stock as more balanced ahead of an upcoming May 25 meeting among global oil producers. VLO stock is trading down 1% at $64.90 at last check, extending its stay beneath a trendline that's connected a series of lower highs since early March.

Skepticism has been ramping up elsewhere, too. While short interest climbed nearly 12% in the most recent reporting period, VLO's 10-day put/call volume ratio of 1.34 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 70th annual percentile. In other words, VLO options traders have bought to open puts over calls at a faster-than-usual clip.

FRTA Stock Extends Spiral After Downgrades

Forterra stock gapped lower on Monday, after reporting weaker-than-expected earnings and guidance. Today, FRTA shares are trading down 9.8% at $13.47, following downgrades to the equivalent of "neutral" at both RBC and SunTrust Robinson, as well as a pair of price-target cuts. FRTA is now staring at a roughly 32% year-to-date deficit, and more analysts could be encouraged to downwardly revise their ratings. While not a single one of the six covering brokerage firms maintains a "sell" rating, the average 12-month price target of $19.33 sits well above FRTA stock's current perch.

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