Tuesday Morning’s Market Insights: LendingClub Corp (LC), Freeport-McMoRan Inc (FCX), Aegerion Pharmaceuticals, Inc. (AEGR), NQ Mobile Inc (ADR) (NQ)


LendingClub Corp (NYSE:LC) is down over 10% this morning, after the company received a subpoena for the justice department regarding the resignation of founder Renaud Laplanche and an announced board review of disclosure policies. The former chief executive was in hot water after he failed to report loan-sale errors, among other miscommunication with the board. Investors are worried that Laplanche’s resignation represents a major shift in strategy, though the firm is more concerned with repairing its image. Scott Sunburn, lending clubs president and acting CEO stated, “Our business depends on trust. The problems identified this quarter run counter to our values and will never be tolerated.” LC also stated they are working closely with the SEC and Justice Department regarding the investigation.

Following the announcement, Compass Point analyst Michal Tarkean reiterated a Sell rating on the stock with a $3 price target. According to the analyst, “Trust with the board and the leadership is critical,” he continued, “Trust is a core part of their business, especially for a new industry like this.”

According to TipRanks’ statistics, out of the 11 analysts who have rated the stock in the past 3 months, 3 gave a Buy rating, 3 gave a Sell rating, and 5 remain on the sidelines. The average 12-month price target for the stock is $9.29, marking an 136% downside from where shares last closed.

Freeport-McMoRan Inc (NYSE:FCX) is up over 3% after Jefferies analyst Christopher LaFemina upgraded the stock from Hold to Buy and increased his price target to $15 from $12.50. He states, “Despite the macro risks, we are more positive on FCX shares now than we were earlier this year as the company is making accretive asset sales and is entering a period of strong FCF due to lower costs and capex.” He continued “FCX should also benefit from a recovery in the copper price as the market shifts to deficits later this decade. After strong performance YTD but a 21% pullback in these shares over the past two weeks (S&P 500 is flat), it is time to buy FCX now.”

According to TipRanks’ statistics, out of the 11 analysts who have rated the stock in the past 3 months, 2 gave a Buy rating, 2 gave a Sell rating, and 7 remain on the sidelines. The average 12-month price target for the stock is $10.10, marking an 8% downside from where shares last closed.

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) is down 15% after the company reported 1q:16 earnings yesterday. The company reported revenues for Juxtapid of $26 million and Myalept of $9.55 million, missing consensus estimates of $32 million and $10 million, respectively. The company also posted a loss of ($1.72) per share, way above the ($0.54) consensus estimates. The company also provided weaker than expected guidance for FY16. The company experienced lower q/q sales of the two drugs marked by lower patient levels in both the U.S and abroad. Analysts believe competition from the PCSK9’s contributed to the weaker quarter.

Analyst Phil Nadeau of Cowen & Co. weighed in on the company reiterating a Market Perform rating on the stock and lowering his price target to $2 (from $7). He states, “At the current run rates for the two products, Aegerion is not profitable, and risks running out of capital to fund operations. Our model suggests that AEGR will need to continue to cut costs, and secure financing, in order to fund operations through 2017 and to achieve cash flow breakeven.”

According to TipRanks, out of the 2 analysts who have rated the company in the past 3 months, 1 gave a Buy rating and 1 remains neutral. The average 12-month price target for the stock is $11, marking a 376% upside from where shares last closed.

NQ Mobile Inc (ADR) (NYSE:NQ) is up 16% after it entered into an agreement to sell its entire stake in FL Mobile Jiutian technology to Shenzhen Prince New Materials for RMB 3243.5 million. The sale is subject to Shenzhen Price shareholder approval as well as approval by the China securities regulatory commission.

According to TipRanks, only 1 analyst rated the company in the past 3 months with a Buy rating and a $13 price target.