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2 Commodity Stocks Receiving Bearish Analyst Attention

TECK stock was started at 'sell'

Managing Editor
Sep 18, 2017 at 10:03 AM
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Analysts are weighing in on steelmaking coal and copper concern Teck Resources Ltd (USA) (NYSE:TECK), natural gas issue Chesapeake Energy Corporation (NYSE:CHK), and biotech stock Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Here's a quick roundup of today's bearish brokerage notes on shares of TECK, CHK, and TEVA.

Teck Resources Shares Started at 'Sell'

Teck Resources stock is up 1.2% to trade at $21.31, even after Axiom Capital started the stock with a "sell" rating and $15.60 price target -- a nearly 27% discount to current levels. The company is also in the news today for increasing its production guidance for its Red Dog operation.

TECK stock has dropped roughly 8.5% so far in September, though its pullback could be a "buy" signal, if past is prologue. In the options pits, traders have bought to open calls over puts by a wider-than-usual margin. TECK sports a 10-day call/put volume ratio of 4.88 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 86th percentile of its annual range. 

Chesapeake Energy Stock Shrugs Off Price-Target Cut

Chesapeake Energy stock is up 1.8% to trade at $4.07, despite Simmons slashing its price target to $4 from $6. It's been a tough year for CHK stock, which has shed 43% year-to-date and fell to an annual low of $3.55 on Aug. 29. Unsurprisingly, CHK stock remains heavily shorted. The 196 million shares sold short represent over 22% of the stock's total available float, or more than six times CHK's average daily trading volume.

RBC Sees New Lows Ahead For Teva Pharmaceutical

Teva Pharmaceutical Industries stock is down 1.2% to trade at $17.88, after the company announced it was selling assets of its specialty women's health business for $1.38 billion. Earlier today, TEVA stock was it with a price-target cut to $15 from $21 at RBC.

The new price target, which mark a new 15-year low, represents a 38% decrease from TEVA's average price target of $24.45. TEVA stock has shed over 65% year-over-year, and analysts are pessimistic. Of the 20 brokerages covering TEVA, 17 rate the stock a "hold" or "strong sell."
 

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