In this article, we present the 5 pharmaceutical stocks that are being downgraded by analysts. If you want to read our comprehensive analysis of the pharmaceutical industry, go directly to Analysts Are Downgrading These 10 Pharmaceutical Stocks.
5. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
Number of Hedge Fund Holders: 28
Although it’s not a pure pharma play, Dentsply Sirona makes dental equipment and specializes in anesthetics, plaque and gum disease prevention (prophylaxis) and tooth polishers. The stock is down about 13% after Piper Sandler analyst Jason Bednar downgraded Dentsply Sirona to Neutral from Overweight with a price target of $46, down from $71. The analyst highlighted the weak Q1 results and the sudden departure of CEO Don Casey for the downgrade.
4. Checkmate Pharmaceuticals, Inc. (NASDAQ:CMPI)
Number of Hedge Fund Holders: 3
Checkmate Pharmaceuticals Inc (NASDAQ:CMPI) is developing a new approach to cancer immunotherapy. It’s focusing on CpG oligonucleotides to discover and develop immunotherapies designed to increase the efficacy of existing immunotherapies.
BTIG analyst Kaveri Pohlman recently downgraded Checkmate Pharmaceuticals (NASDAQ:CMPI) to Neutral from Buy without a price target after the company agreed to be acquired by Regeneron (REGN) for $10.50 per share in cash.
3. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Number of Hedge Fund Holders: 26
Apellis Pharmaceuticals is an early-stage biotechnology company that focuses on chronic inflammatory and lung diseases. Roth Capital analyst Elemer Piros recently downgraded Apellis to Sell from Neutral with an unchanged $40 price target. The analyst noted Apellis Pharmaceuticals’ recent announcement of 18-month data from two phase 3 trials of pegcetacoplan. The analyst cited “mixed” nature of the pivotal trials and “significant appreciation” of the stock and uncertainty around the future for the downgrade.
2. Repare Therapeutics Inc. (NASDAQ:RPTX)
Number of Hedge Fund Holders: 14
Repare Therapeutics Inc (NASDAQ: RPTX) is a Canada-based precision oncology company. Stifel analyst Benjamin Burnett downgraded Repare Therapeutics to Hold from Buy with a price target of $11, down from $45. The analyst is not much confident about the combination of RP-3500 and PARP inhibitors.
1. Sabra Health Care REIT, Inc. (NASDAQ:SBRA)
Number of Hedge Fund Holders: 18
Not a pure pharmaceutical stock per se, Sabra is a leading healthcare REIT that invests in skilled nursing, senior housing and behavioral health facilities. Barclays recently downgraded Sabra Health Care to Equal Weight from Overweight with a price target of $14, down from $16. The firm’s analyst Steve Valiquette thinks that skilled nursing facility overhangs are continuing to increase. The company also has lower than average rent coverage ratios according to the analyst.
For a look at some other interesting stocks that could make good additions to your own portfolio, check out 10 Best Dividend Stocks for College Students and 10 Best Biotech Stocks Under $5.
