Analysts are weighing in on biotech stocks PTC Therapeutics, Inc. (NASDAQ:PTCT) and Prothena Corporation (NASDAQ:PRTA), as well as oil-and-gas stock Weatherford International(NYSE:WFT). Here's a quick roundup of today's bearish brokerage notes on shares of PTCT, PRTA, and WFT.
Earlier in the week, PTC Therapeutics stock tanked after a preliminary Food and Drug Administration (FDA) review of the company's DMD drug said the data wasn't "persuasive." The stock was halted all day yesterday for an FDA panel review of the drug, which conclude with panelists stating that while ataluren may work, the data was inconclusive.
PTCT stock resumed trading today, andis currently up 6% to trade at $18.45, despite receiving a price-target cut to $15 from $22 at Barclays. The shares have shed 16% since touching an annual high of $22 on Sept. 6. Analysts remain skeptical. Of the eight brokerages covering the biotech stock, six rate it a "hold."
Prothena Corporation stock is down 4.5% to trade at $64.68, after the biotech's psoriasis drug failed to "meet pre-specified criteria ... required to advance PRX003 into mid-stage clinical development." As such, Cantor Fitzgerald cut its price target on PRTA stock to $79 from $86, though the target still represents expected upside of 22% from the equity's current perch.
PRTA stock touched an annual high of $70 yesterday, and despite today's hiccup, remains 32% higher year-to-date. Short sellers -- including Muddy Waters -- are likely cheering PRTA's short-term breather. Short interest has increased by 63% since mid-April, to 6.85 million shares -- roughly 18% of PRTA's total available float.