How Wall Street Moved Seadrill, Micron And Celgene This Morning
Seadrill Ltd (NYSE:SDRL) is up more than 7% in pre-market to over $4.00 as oil prices slowly climbed, escaping an 11-year low. U.S. crude inventories remain bloated but nevertheless fleetingly traded slightly over benchmark Brent prices; a rare occurrence over the last five years. Brent crude rose 1.9% this morning after hitting a 2004 low yesterday. The future of oil continues to look bleak thanks to oversupply, slowing demand, and OPEC's reluctance to change its output quota. According to TipRanks, 2 analysts are bearish on SeaDrill while one remains on the sidelines. The average 12-month price target for the stock is $9, marking a 141% potential upside from where shares last closed.
Micron Technology, Inc. (NASDAQ:MU) is falling 5% in pre-market trading this morning after the company reported its Q1/2016 yesterday after market close. The company posted revenues of $3.35 billion, missing analysts' expectations of $3.521 billion. Earnings per share for the quarter were $0.24, which surpassed earnings estimates of $0.23 per share. This quarter, the company struggled with weak chip demand and declining DRAM prices. Following earnings, analyst Rajvindra Gill of Needham maintained his Hold rating for the company. He states, "MU issued its 5th consecutive guidance miss, as the historically weak PC market continues to weigh on DRAM ASPs, which we estimate have declined ~30% over the last 4 qrtrs… We do, however, believe MU's model has room for leverage if demand stabilizes, and if its technology can catch its peers."
According to TipRanks' statistics, out of the 21 analysts who have rated the company in the last 3 months, 16 gave a Buy rating, 2 gave a Sell rating, and 3 remain on the sidelines. The average 12-month price target for the stock is $20.15, marking a 38% upside from where shares last closed.
Celgene Corporation (NASDAQ:CELG) is up more than 6% in pre-market to $118.45 after the biotech company reached an agreement with Natco Pharma regarding Revlimid, Celgene's flagship product for multiple myeloma. Revlimid's last patent expires in 2027. According to the deal, Natco is licensed to sell a limited amount of lenalidomide, the generic version of the drug, in the US in 2022. By 2026, Natco will be able to sell unlimited amounts of lenalidomide. Analysts view this deal as a positive because many anticipated a much earlier entry date for the generic version, which will hurt Revlimid sales. Eric Schmidt of Cowen & Co. reiterated an Outperform rating on Celgene in light of the favorable deal. He commented, "We view the deal terms as favorable and reflective of the strength of Revlimid's IP portfolio… We believe shares could be up ~10% on such favorable settlement terms." According to TipRanks, all 8 analysts who have rated the stock in the last 3 months are bullish.
Bed Bath and Beyond Inc. (NASDAQ:BBBY) is down over 5% in pre-market trading this morning after last night's news that the company cut its sales forecast for the third quarter by 0.4% and lowered its EPS estimate to $1.07-$1.10 per share, compared to its prior estimates of $1.14-$1.21 per share. Chief Executive of the company Steven Temares stated, "…We experienced softer in-store transaction counts, and on the other hand sales from our customer-facing digital channels demonstrated strong growth, in excess of 25 percent." According to TipRanks' statistics, out of the 6 analysts who rated the company in the last 3 months, 2 gave a Buy rating, 1 gave a Sell rating, and 2 remain on the sidelines. The average 12-month price target for the stock is $67.40, marking a 31% upside from where shares last closed.
Latest Ratings for SDRL
|Jul 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Jan 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Jan 2016||Bank of America||Downgrades||Neutral||Underperform|
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.