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2 Drug Stocks Stung by Bearish Analyst Attention

Snap shares are looking for a third straight win

Aug 7, 2017 at 9:26 AM
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Analysts are weighing in on Snapchat parent Snap Inc (NYSE:SNAP), as well as drug stocks Mylan N.V. (NASDAQ:MYL) and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Here's a quick roundup of today's bearish brokerage notes on shares of SNAP, MYL, and TEVA.

Deutsche Bank Trims Outlook on SNAP 

Snap stock will try for its third straight win today, but a price-target cut to $20 from $23 at Deutsche Bank could hold back the shares. Despite the two-day win streak, SNAP touched a record low last Thursday, before closing Friday at $13.52. This means the social media stock has pulled back some 54% since its record peak of $29.44 from March 3. Most analysts are already bearish on Snap, with 17 of 26 covering brokerage firms dishing out "hold" or "strong sell" recommendations. 

Mylan Stock Could Hit Fresh Lows After Morgan Stanley Note

Morgan Stanley cut its price target on Mylan stock to $36 from $52, dropping the shares 3% in electronic trading. The company just reported disappointing earnings last week, which sent MYL to a four-year low of $32.77, before it closed Friday at $32.92. 

Analysts don't appear to be the only ones growing more bearish on Mylan, either. That is, short interest on the equity grew by 16% during the past two reporting periods alone. Going by average daily volumes, these bears now control more than six days' worth of buying power. In other news, the company announced its TLD combination for HIV and AIDS has received tentative approval from the Food and Drug Administration (FDA). 

Teva Woes Persist with Bearish Analyst Attention

Morgan Stanley also weighed in on shares of Teva Pharmaceuticals, downgrading the stock to "underweight" from "equal weight" and slashing its price target to $16 from $36. Barclays also lowered its price target, dropping it to $23 from $38. This comes after TEVA shares on Friday dropped over 13% to hit a 14-year low of $20.41, before closing at $20.60.

Meanwhile, options traders have also been more bearish than usual. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call volume ratio of 1.02, which ranks in the 73rd annual percentile. In other words, put buying has been more popular than normal, relative to call buying. Meanwhile, the company just announced that the FDA approved its QVAR RediHaler

 

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