MMR

3 Stocks Suffering From Analyst Bear Notes Today

Invesco and Endo stocks are both below their 50-day trendlines

Managing Editor
May 13, 2019 at 3:19 PM
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China's tariff retaliation has stocks pacing toward their worst day in months. Also in focus this afternoon are Dublin-based Endo International PLC (NASDAQ:ENDP), investment management firm Invesco Ltd. (NYSE:IVZ), and fast food concern Restaurant Brands International Inc (NYSE:QSR). Below, we will dive into what is moving the shares of ENDP, IVZ, and QSR.

More Bearish Attention on Endo Stock

Among the worst of the Nasdaq, Endo stock has gapped 18% lower to $6.60, in response to not only widespread weakness in drugmakers, but also a double-dose of bear notes handed over from J.P. Morgan Securities and Piper Jaffray. The former served a downgrade to "underweight" from "neutral," and maintained its $9 price, while Piper cut its price target to $8 from $11, and lowered its 2020 earnings estimate for the stock to $2.29 per share.

Today's drop is not too surprising however, as the shares were already seeing pressure from the 50-day moving average. Over the past six months, ENDO has shed 40.3%. Overall analyst outlook was unsure coming into today, with 11 of 15 sporting tepid "hold" or worse ratings. Plus, the stock was well overdue for a price-target cut, with its average 12-month price target more than double current trading levels.

Invesco Stock Slammed at UBS

Invesco is down 6.2%, after being slammed with a downgrade to "sell" from "neutral" at UBS. The shares have now gapped below the formerly supportive 50-day moving average, and are back trading right at the $20 mark, a floor for the stock between this past October and December. Year-to-date, IVZ remains up 19%.

Analyst were also wary of Invesco stock heading into today's trading, with 11 of 13 covering firms carrying a "hold" recommendation. Regardless, IVZ's average 12-month price target of $22.92 comes in at a 14.4% upside to current levels.

Longbow Research Hands Out Rare Downgrade

Also seeing bearish analyst activity today has been QSR, which was downgraded at Longbow Research to "underperform" from "neutral." The Tim Horton's parent is now down 2% at $65.90 this afternoon, but remains up 26% year-to-date.

As we recently suggested, today's downgrade for QSR may have been long overdue. Unlike the aforementioned names, Restaurant Brands stock had an optimistic outlook from analysts with 12 of 15 sporting "buy" or "strong buy" ratings. Plus, the stock's average 12-month price target of $70.20 is 6.4% above current trading levels.

 

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