By Karee Venema / October 04, 2017 / www.schaeffersresearch.com /
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Analysts are weighing in on drugmakers Teva Pharmaceutical Industries Ltd (NYSE:TEVA) and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), as well as toy stock Hasbro, Inc. (NASDAQ:HAS). Here's a quick roundup of today's bearish brokerage notes on shares of TEVA, MNTA, and HAS.
Teva Tanks on Mylan's FDA Win
Teva Pharmaceutical stock is down 11.8% at $16.60, after rival Mylan (MYL) received Food and Drug Administration (FDA) approval for a generic version of Teva's multiple sclerosis drug Copaxone. The regulatory nod came earlier than expected, with analysts at J.P. Morgan Securities opining that "The news adds to an already challenging near-term setup" for TEVA. Meanwhile, Barclays sliced its price target on TEVA shares to $21 from $23, and Cowen and Company cut its price target to $18 from $30 -- though these are still premiums to the stock's current perch.
TEVA stock has now shed nearly 50% of its value in 2017, and more bearish brokerage notes could come down the pike. Of the 20 analysts covering the shares, three still maintain a "strong buy" rating. Plus, the average 12-month price target of $23.41 is well above present trading levels.
Momenta Stock Sinks On Mylan Competition
Momenta Pharmaceuticals stock is also reeling on the Mylan news, as the company's own drug was expected to be the first generic Copaxone on the market. Pouring salt on the proverbial wound is a price-target cut to $16 from $17 at Barclays. At last check, MNTA stock was down 24.6% at $13.20 -- territory not charted in six months. The shares are now set to close the week below their 50- and 80-week moving averages, which have contained pullbacks in 2017.
Though the stock is short-sale restricted today, bearish bettors could continue to ramp up their exposure once the restriction is lifted. Short interest on MNTA jumped 8.7% in the two most recent reporting periods to 4.88 million shares -- accounting for nearly 8% of the equity's available float.
'My Little Pony' Expected to Be a Loss for Hasbro
Analysts at MKM Partners slashed their price target on Hasbro stock to $98 from $112, and cut their third-quarter sales forecast for the toymaker, citing concerns about the company's movie investments. Specifically, the analysts expect Hasbro's first in-house production, "My Little Pony: The Movie," to incur a loss of $6 million before movie-related toy sales.
In reaction, Hasbro stock has shed 0.3% to trade at $97.21 -- pulling back from its 50-day moving average, which is currently located near familiar resistance in the $98 region. Options traders are hopeful the stock can break out above these technical hurdles. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.14 ranks in the 79th annual percentile, meaning calls have been bought to open over puts at an accelerated clip of late.