Vetr Crowd Downgrades Tetraphase

• Shares of Tetraphase Pharmaceuticals Inc TTPH have lost nearly 75 percent of value year-to-date.
• The Vetr crowd downgraded Tetraphase to a rating of four stars out of a possible five.
• Despite a downgrade, the Vetr crowd still sees upside in Tetraphase's stock as 66 percent of the crowd's ratings are bullish.

Tetraphase Pharmaceuticals, a clinical-stage biopharmaceutical company that develops antibiotics for serious and life-threatening multidrug-resistant infections, saw its stock plunge by around 80 percent in early September after the top-line results from a phase 3 trial failed to meet its primary endpoint.

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Tetraphase's stock hit a 52-week low of $7.20 following the phase 3 trial and have since rebounded to the $10 level. The Vetr crowd on Wednesday downgraded the company to a four star out of five rating from a prior 4.5-star rating. Meanwhile, 66 percent of the crowd's ratings are bullish.

Matthew Waterman, a member of the Vetr crowd, pointed out that since Tetraphase develops antibiotics to combat infections, the company likely controls a product "that is pretty marketable to the right consumer." He added that the stock may fit the profile of a Speculative Buy, especially when factoring in the company's market cap is "only about a third larger than their asset value."

Waterman placed a $12 price target on Tetraphase. However, his price target along with the crowd-sourced price target of $11.66 is less ambitious than some of Wall Street's pros. On November 19, analysts at SunTrust Robinson Humphrey upgraded Tetraphase to Buy from Neutral with a price target raised to $21 from a previous $12.