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Fly News Breaks for April 8, 2016
RAD, X, HAL, BHI, AKS, ICPT
Apr 8, 2016 | 10:16 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Intercept (ICPT) downgraded to Underweight at Morgan Stanley with analyst Andrew Berens saying the FDA panel endorsed Ocaliva in primary biliary cholangitis, or PBC, but failed to support usage in advanced PBC patients due to lack of data supporting efficacy, combined with safety concerns. He adds that the lack of endorsement by the panel will have important commercial implications and could impact the PBC label and launch, as well as usage in NASH cirrhotics. 2. AK Steel (AKS) downgraded to Sell at UBS by analyst Matt Murphy, who cited the recent appreciation of the shares and concerns over balance sheet deterioration. The analyst believes AK Steel's average sales price will be down in 2016 and points to its "relatively high cost base and a track record of sustained ongoing cash burn." 3. Baker Hughes (BHI) downgraded to Underperform at Jefferies with analyst Brad Handler saying the Department of Justice lawsuit and scrutiny from other world regulators make the acquisition by Halliburton (HAL) "very unlikely." Handler said the DoJ lawsuit "is daunting," and even if won, the merger may be unable to clear regulatory resistance elsewhere in the world. 4. U.S. Steel (X) downgraded to Sell at UBS by analyst Matt Murphy, who said the company is unlikely to generate sustainable free cash flow under current steel prices. The analyst believes U.S. Steel will be in a long-term cash burn position once cost cutting and working capital reductions cease. 5. Rite Aid (RAD) downgraded to Hold at Deutsche Bank following the company's Q4 results. Analyst George Hill said he sees limited upside to the Walgreens Boots Alliance (WBA) and added that waiting for the 11% upside to the deal price is unattractive given the recent government initiatives to block mergers. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
News For ICPT;AKS;BHI;HAL;X;RAD From the Last 2 Days
RAD
Mar 28, 2024 | 16:23 EDT
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here