3 Stocks Lower on Bearish Analyst Attention

XPO shares have dropped over 20% today

Dec 13, 2018 at 2:49 PM
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U.S. stocks aren't making too big of a move in either direction today, with the Dow last seen slightly lower. As for individual stocks to watch, traders should check out the news around beer maker Boston Beer Company Inc (NYSE:SAM), supply chain solutions provider XPO Logistics Inc (NYSE:XPO), and pharma name Alkermes Plc (NASDAQ:ALKS). Continue reading for more insight on the shares of SAM, XPO, and ALKS.

UBS Says Sell SAM Stock

SAM shares are under pressure today, last seen off 3% at $265.75, after UBS began coverage with a "sell" rating and $228 price target. The stock has found familiar support at the $260 level, though, which is right near its 200-day moving average. Moreover, Boston Beer is up 39% in 2018.

Most other analysts share UBS' skeptical outlook, however, with six of seven handing out "hold" or worse recommendations. In a similar vein, the average one-year price target from this bunch offers little upside, coming in at $276.

Scathing Spruce Capital Note Sinks XPO Shares

XPO stock is collapsing today, sliding 25.8% to trade at $44.73, fresh off an annual low of $44.62. The sell-off is a continuation of yesterday's drop, sparked by the company's lowered full-year outlook.

On top of this, analysts have weighed in bearishly since yesterday's close. For instance, Spruce Capital initiated coverage with a "strong sell," saying XPO is "uninvestible and a potential zero" in a scathing note.

Elsewhere, Jefferies lowered its still-high price target to $120 from $145, adding that it believes macro issues have caused the company to underperform its peers. Credit Suisse also cut its price target down to $92, while SunTrust Robinson initiated coverage with a "buy" rating. Looking more broadly, 14 of 15 analysts already say to buy the equity, even though it's declined 60% in the past three months. 

ALKS Stock Downgraded on Pipeline Disappointment

ALKS is trading down 4.6% at $33.86, touching a two-year low of $32.37, after Credit Suisse downgraded the shares to "underperform" from "outperform" and dropped its price target to $30 from $47 -- a Street-low -- citing a "disappointing" drug pipeline. The stock has been grinding lower for months, and is sitting on a year-to-date deficit of 38.2%.

Amid the slide to new lows, Alkermes short sellers have been cashing out. Short interest declined by 14.5% in the past two reporting periods, though these bears still control six days' worth of buying power, based on the average daily trading volume.

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