The brokerage firm set a Street-low price target on the Inbrija parent
The shares of Acorda Therapeutics Inc (NASDAQ:ACOR) are spiraling today, after Goldman Sachs downgraded the drug stock to "sell" from "neutral," and nearly halved its price target to $10 from $19 -- a roughly 50% discount to last night's close, and the lowest target on Wall Street. The brokerage firm expects Ampyra revenue to ease as generics for the multiple sclerosis drug hit the market, and sees lower-than-anticipated U.S. sales for ACOR's Parkinson's drug, Inbrija.
At last check, ACOR is trading down 15.1% at $16.16, set for its worst day since Sept. 10 -- when news of a regulatory hurdle for Inbrija sent the shares tumbling more than 24%. The security has now sliced through recent support in the $17 region, home to its negative 20% year-to-date return, and is closing in on its Sept. 13 annual low of $15.60.
Against this backdrop, it's not hard to see why most analysts are already bearish on Acorda Therapeutics. However, two of eight brokerages still maintain a "strong buy" rating on the stock, and the average 12-month price target sits all the way up at $22.11 -- suggesting more negative analyst notes could come down the pike.
Elsewhere, short sellers have been actively targeting ACOR stock, which has likely increased pressure on the shares. Short interest is up 88.5% from the Sept. 1 reporting period to 8.03 million shares -- the most in over a year. These bearish bets accounts for 17.2% of the equity's available float, or 11.5 times the average pace of trading. Shorts are sidelined at the moment, though, with Acorda Therapeutics short-sale restricted during today's bear gap.