Analysts’ Downgrades for February, 11th (ALSN, ASR, BLUE, CLDX, CLVS, EXEL, GDOT, GPRO, MB, MEOH)

Analysts’ downgrades for Monday, February 11th:

Allison Transmission (NYSE:ALSN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Allison Transmission has raised its guidance for 2018 on the back of increased demand for global on and off-highway products, price improvement of certain products, and its growth initiatives. Also, a strong cash flow helps the company to return capital to shareholders, pay debt, and invest in its strategy of developing product and technology. Except for the company’s huge presence in North America, it focuses to expand in emerging and under-served markets through its diverse product range, thus, enabling it to add new customers. However, insufficient product line to match the global shift toward electric vehicles makes the company vulnerable to compete in the market. Further, roughly 49% of the company’s yearly net sales is contributed by its top five OEM customers. High customer concentration makes its susceptible to any loss of prime customers.”

Grupo Aeroportuario dl Srst SAB CV (NYSE:ASR) was downgraded by analysts at Scotiabank from a sector perform rating to an underperform rating.

bluebird bio (NASDAQ:BLUE) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “bluebird is highly dependent on Celgene for the development of its candidates. Termination of the agreement with Celgene will have a negative impact on the company's growth prospects. While the market for gene therapies promises potential, competition is stiffening in this space. Hence, we expect investors to focus on pipeline updates. The company does not have any approved products in its portfolio yet and an unfavorable outcome from any of the ongoing studies will be a huge setback. Shares have underperformed the industry in the last twelve months. Loss estimates have  widened ahead of the Q4 results. Nevertheless, bluebird’s progress with its pipeline is encouraging. bluebird has an impressive pipeline of gene therapies for genetic diseases and cancer. LentiGlobin promises potential. The company’s collaboration with Regeneron is encouraging as it also provides the company with funds.”

Celldex Therapeutics (NASDAQ:CLDX) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Following the discontinuation of glembatumumab vedotin studies, Celldex is focused on developing its anti-cancer pipeline candidates including CDX-301, which is being developed for the lucrative lung cancer market. Celldex also has collaborations with big pharma companies, which lend solid support as well as expertise. Meanwhile, the Kolltan acquisition added some interesting candidates to the company’s pipeline. However, the failure of glembatumumab vedotin was a major setback. With no approved products, further pipeline setbacks will severely impact Celldex. The company depends entirely on product development, licensing agreements, contracts and grants for revenues. Shares of the company have significantly underperformed the industry in the past year. Estimates movement has been mixed ahead of Q4 earnings. Celldex has a positive record of earnings surprises in the recent quarters.”

Clovis Oncology (NASDAQ:CLVS) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Clovis’ sole marketed drug Rubraca has registered a slower-than-expected sales growth owing to rising competition. Although Clovis received approval for the label expansion in second-line maintenance setting in the United States, irrespective of BRCA-mutation, its adoption is facing challenges. An approval in similar indication in Europe was granted in January 2019. Moreover, several studies on Rubraca, targeting different types of ovarian cancer patients, are currently underway. Successful development is likely to bolster the prospect of the drug. The company is actively working on expanding the label of Rubraca as monotherapy or combination therapy in and beyond ovarian cancer. Clovis’ shares have underperformed the industry in the past six months. Loss estimates widened ahead of Q4 earnings. Clovis has a mixed record of earnings surprises in the recent quarters.”

Exelixis (NASDAQ:EXEL) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Exelixis’ Cabometyx continues to perform well. The company experienced an 11% increase in Cabometyx’s prescriber base in the third quarter sequentially. We expect Cabometyx sales to grow as the drug is now approved for first-line RCC, which will expand the eligible patient population in the United States and also eat into the market share of two key drugs — Sutent and Votrient. Moreover, Exelixis and partner Ipsen obtained EC approval for Cabometyx as a monotherapy for hepatocellular carcinoma (HCC) in adults who have previously been treated with Bayer’s Nexavar. In January 2019, the FDA also approved Cabometyx for HCC. The label expansion of the drug should boost sales. Shares have outperformed the industry in the last six months. However, the approval of Opdivo and Yervoy for the treatment of poor and intermediate risk first-line RCC has further increased competition. Esimates are stable ahead of 4Q results.”

Green Dot (NYSE:GDOT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Green Dot’s long-term strategic plan to be a ‘New Kind of Bank’ is leading to impressive results. Strength across established product lines and BaaS platform programs are the key drivers of growth. The company’s Banking as a Service or BaaS platform programs are growing very quickly and contributing significantly to Green Dot’s GDV growth, active card growth and revenue growth. The company’s long-lasting relationship with Walmart is a key catalyst behind its operating revenue growth. Shares of the company have outperformed its industry in the past year. Despite such positives, Green Dot experiences fluctuation in revenues due to seasonal factors. The company has never declared and currently do not have any plan to pay cash dividends on common stock.”

GoPro (NASDAQ:GPRO) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “GoPro reported better-than-expected fourth-quarter 2018 results wherein both the top line and the bottom line beat the respective Zacks Consensus Estimate. The company expects to translate the healthy momentum in its business along with controlled cost into growth and profitability in 2019. GoPro is optimistic about its prospects mainly on account of strong demand for its products in end markets. It aims to expand footprint in emerging markets like India and remains focused on scaling its CRM efforts to augment customer base. The stock has outperformed the industry in the past year on an average. However, the company spends a significant amount on R&D to maintain its dominant market share which might hurt margins going forward. It operates in a highly competitive camera and camcorder market which has presence of Canon and Nikon. GoPro reaps majority of its revenues from capture devices and thus faces a high product concentration risk.”

MINDBODY (NASDAQ:MB) was downgraded by analysts at Wells Fargo & Co from an outperform rating to a market perform rating.

Methanex (NASDAQ:MEOH) (TSE:MX) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Methanex’s profits increased year over year in fourth-quarter 2018. However, adjusted earnings missed the Zacks Consensus Estimate. Methanex is exposed to a volatile methanol pricing environment. Lower expected methanol prices are likely to weigh on its margins in first-quarter 2019. Moreover, it continues to face headwinds due to curtailment of gas supply. Production outages are also affecting its operations.”

Grupo Aeroportr dl Pcfco SAB de CV (NYSE:PAC) was downgraded by analysts at Scotiabank from an outperform rating to a sector perform rating.

Republic Services (NYSE:RSG) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Republic Services reported mixed fourth-quarter 2018 results with earnings surpassing the Zacks Consensus Estimate but revenues lagging the same. The company continues to grow internally through long-term contracts for the collection, recycling and disposal of solid waste materials. The company is focused on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders, which will reduce costs and improve profitability. It has been consistent in rewarding its shareholders through dividend payments and share buybacks. Shares of the company have outperformed its industry in the past year. Despite such positives, weak landfill pricing is likely to weigh on Republic Services' margins and earnings. The company’s revenues are highly seasonal in nature. High debt may limit the company’s future expansion and worsen its risk profile.”

SINA (NASDAQ:SINA) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “SINA’s effort to add consumer-centric features to the growing Weibo platform is noteworthy for investors. The company’s partnerships with professional agencies in verticals like e-commerce, video IP and live broadcasting will help it to expand mobile market share. Growing popularity of Weibo and a robust mobile user base in China is a tailwind. Meanwhile, estimates have been stable lately ahead of the company's Q4 earnings release. The company has mixed record of earnings surprise in the recent quarters. However, shares have underperformed the industry in the past year. Intensifying competition within the online advertising business in China is a headwind. Stricter regulation in the micro-lending sector is an overhang. Additionally, Sina’s social media platform Weibo is facing strict regulation that is hurting growth prospects.”

Sogou (NYSE:SOGO) was downgraded by analysts at Deutsche Bank AG from a hold rating to a sell rating.

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