3 Drug Stocks Slapped With Negative Analyst Notes

BMO's new price targets for BIIB and ICPT sit well above current trading levels

by Karee Venema

Published on Nov 28, 2017 at 9:52 AM

Analysts are weighing in drug stocks Intercept Pharmaceuticals Inc (NASDAQ:ICPT), Biogen Inc (NASDAQ:BIIB), and Regeneron Pharmaceuticals Inc (NASDAQ:REGN). Here's a quick roundup of today's bearish brokerage notes on shares of ICPT, BIIB, and REGN.

Leerink Sees Risks for Intercept Pharmaceuticals Stock

Leerink cut its price target for Intercept Pharmaceuticals stock to $60 from $66, saying a potential black box warning for the biotech's liver drug Ocaliva -- as well as positive reviews for rival CymaBay Therapeutics' (CBAY) seladelpar drug -- represent risks to ICPT. Nevertheless, the stock is up 1.3% at the open to trade at $59.86.

Longer term, ICPT has struggled on the charts -- losing half its value since its mid-September highs near $122 due in part to a pair of bear gaps related to regulatory warnings and bearish analyst notes on Ocaliva. There's more room for negative brokerage attention to come down the pike, too, considering seven of 16 analysts still maintain a "buy" or "strong buy" rating on Intercept Pharmaceuticals.

BMO Cut Its Price Target for Biogen Stock

BMO cut its price target on Biogen stock to $385 from $386, though this still represents expected upside of 24% to last night's close at $311.73. At last check, BIIB shares have edged up 0.5% to trade at $313.18.

After hitting a two-year high of $348.84 on Oct. 18, the equity gapped lower on concerns over the company's Spinraza sales. Since then, BIIB has been consolidating in the $308-$316 region, and recently lost a foothold atop its 80-day moving average.

Most analysts remain upbeat toward Biogen shares, though. Of the 22 brokerages covering BIIB, 15 maintain a "buy" or better rating, with not a single "sell" to be found.

Regeneron Pharmaceuticals Stock Tests 2017 Breakeven Level

Regeneron Pharmaceuticals stock also saw its price target cut at BMO, to $444 from $479. This remains well above the equity's current perch, even with REGN shares down 1.4% today at $369.47 -- testing their year-to-date breakeven level.

The stock has been sliding since topping out at an annual high of $543.55 on June 22, shedding 32%. REGN options traders, however, have kept the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.88 ranks in the 77th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual pace.

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