Trending Down: Kate Spade & Co (KATE), Chimerix Inc (CMRX), And Ocwen Financial Corp (OCN)

Posted by Lacee Page January 9, 2015 0 Comment 923 views


New York, NY – GDP INSIDER  – 01/09/2014.

A warning came for investors in Kate Spade & Co (NYSE:KATE) and they heed the call. Analysts at BMO Capital Markets raised concern over the ability of Kate Spade to reward it shareholders. They cited such issues as promotional activities at the retailer’s premium department that don’t seem to be doing much. As such, they downgraded the stock to a “Market Perform” from an “Outperform”.

Additionally, BMO cut target price on Kate Spade & Co (NYSE:KATE) to $32 from $48, because of the aforementioned concern and several others that would likely hurt the stock performance. The downgrade of the stock of KATE and the subsequent cut in the target price was enough to trigger a massive sell-off in the stock.

Nonetheless, about a month ago, analysts at Cowen made a bullish case for Kate Spade & Co (NYSE:KATE). The analysts not only initiated the stock with an “Outperform” rating, but also set a bullish target price of $35 on it. Cowen identified growing online and international sales and differentiated products among the positive indicators.

Is KATE Going To Turn It Around Or Will It Continue To Freefall? See Where KATE Is Going Next With A Free Trend Analysis

Ebola treatment is one area that could bring a lot of benefits to the pharmaceutical companies that develop successful drugs for the virus. However, investors in Chimerix Inc (NASDAQ:CMRX) appear a bit cautious as Ebola trial for the company’s drug, brincidofovir, continues in Liberia.

Doctors in Monrovia this month started using brincidofovir for treatment of Ebola in what is also a clinical trial of the drug. Unlike in the traditional drug testing, brincidofovir is not being tested against a placebo. Ebola has reportedly killed more than 8,000 people in West Africa in the worst outbreak in history, and there is an urgent need for a remedy.

Brincidofovir is a promising treatment for other conditions such as smallpox, for which FDA awarded it a Fast Track designation.

Will CMRX Continue To Drift Lower Or Will It Be Able To Find Support And Reverse? See What’s In Store For CMRX With A Free Trend Report

Ocwen Financial Corp (NYSE:OCN)’s issues with the Department of Financial Services (DFS) appear to have returned to haunt the stock, triggering another sell-off. The financial services company last month reached a settlement with DFS. Some of the negative impacts for the company in the settlement with DFS include a requirement to pay $100 million in monetary penalty. The other adverse impact for Ocwen was the ouster of its founder and chairman.

Nonetheless, analysts believe that Ocwen Financial Corp (NYSE:OCN)’s woes will be short-lived and that the stock looks undervalued.

Is OCN Going To Continue Selling Off Or Will Things Start Turning Around Soon? See What’s Next For OCN With A Free Trend Report

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About Lacee Page

Lacee Page is our White House and political campaign reporter. Lacee also covers justice and national law enforcement issues and congressional reporter focusing on the outputs of the legislative process: government spending, agency regulation and congressional oversight. Lacee received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Lacee attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications.

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