Notable Downgrades: Valeant Pharma (VRX), Arista Networks (ANET), Calpine (CPN), Jumei (JMEI)


Analysts at Goldman (GS) downgraded Valeant Pharmaceuticals International, Inc. (VRX) from ‘Buy’ to ‘Neutral’ in a research report issued to clients on Monday. The name was also lowered to $172 from $224 at Jefferies. Separately, today S&P lowered corporate credit rating on Valeant to ‘B+’ from ‘BB-‘/rating outlook is “negative”.

On valuation measures, Valeant Pharmaceuticals t-12-month revenue is $9.98 billion. VRX ‘s ROE for the same period is 10.41%.

Shares of the $34.27 billion market cap company are down 28.70% year-over-year and 34.48% year-to-date.

Valeant Pharmaceuticals, currently with a median Wall Street price target of $211.47 and a high target of $300.00, rose $6.10 to $99.87 in recent trading.

The chart below shows where the equity has traded over the past 52-weeks.

Arista Networks, Inc. (ANET) was downgraded from ‘Neutral’ to ‘Sell’ at Goldman Sachs.

Shares have traded today between $58.77 and $64.51 with the price of the stock fluctuating between $56.11 to $89.89 over the last 52 weeks.

Arista Networks Inc. shares are currently changing hands at 45.70x this year’s forecasted earnings, compared to the industry’s 14.11x earnings multiple. Ticker has a t-12 price/sales ratio of 6.18. EPS for the same period registers at $1.38.

Shares of Arista have lost $1.62 to $62.89 in midday trading on Monday, giving it a market cap of roughly $4.24 billion. The stock traded as high as $89.89 on November 5, 2014.

Deutsche Bank (DB) reported on Monday that they have lowered their rating for Calpine Corp. (CPN). The firm has downgraded CPN from ‘Buy’ to ‘Hold’ and lowered its price target to $20 from $25.

Calpine Corp. recently traded at $15.32, a loss of $0.19 over Friday’s closing price. The name has a current market capitalization of $5.47 billion.

Jumei International Holding Limited (JMEI) had its rating lowered from ‘Buy’ to ‘Neutral’ by analysts at Goldman on Monday.

JMEI was up $0.58 at $10.58 in midday trade, moving within a 52-week range of $8.32 to $28.17. The name, valued at $1.54 billion, opened at $9.72. Currently there are 10 analysts that rate JMEI a ‘Buy’ vs 3 rating it a ‘Hold’. No analyst rates it a ‘Sell’.

On valuation measures, Jumei Int’l Holding Ltd. ADR shares are currently priced at 25.31x this year’s forecasted earnings. Ticker has a t-12 price/sales ratio of 1.65. EPS for the same period registers at $0.42.

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