Monday Morning’s Market Insights: bluebird bio Inc (BLUE), Chipotle Mexican Grill, Inc. (CMG), Seadrill Ltd (SDRL), Arrowhead Research Corp (ARWR)

bluebird bio Inc (NASDAQ:BLUE) plummeted more than 30% this morning down to $58 as the company presented disappointing BB305 data at the American Society of Hematology meeting. BB305, or LentiGlobin, is a pipeline treatment for a rare and serious blood disorder. The company revealed that every patient responds differently to the experimental treatment, impeding the company from drawing a positive conclusion on the impact of the drug. The stock has fallen now that the long-term success of the pipeline product is in question. Analyst Ying Huang of Merrill Lynch weighed in on the biotech company, downgrading it from Buy to Neutral and lowering his price target from $149 to $102 as a result of the new data. However, most analysts remain bullish as 10 of the 12 analysts polled by TipRanks recommend buying the stock and only 2 remain on the sidelines.  As of this writing, the average 12-month price target for the stock is $138.30, marking a 65% potential upside from current levels.

Click here to view Ying Huang’s past performance and rating history

BLUE consensus

Chipotle Mexican Grill, Inc. (NYSE:CMG) fell over 10% in premarket trading after the company announced Friday that additional cases of E. Coli were linked to its restaurants. As of December 4, there have been 52 reported cases of E. Coli linked to Chipotle restaurants, which have spread from Washington and Oregon to Pennsylvania, in addition to several other states across the country. This increase in E. Coli incidents caused the company to lower its sales target and earnings per share for the fourth quarter, as well as increase its costs related to the replacement of food in select locations. The company announced on Friday that it is hiring IEH Laboratories in Seattle to help the company test its produce before it is shipped to restaurants.

Following this news, analyst Andrew Charles downgraded Chipotle from Outperform to Market Perform with a price target of $515. According to TipRanks’ statistics, out of the 23 analysts who have rated CMG in the last 3 months, 11 gave a Buy rating, 1 gave a Sell rating, and 11 remain on the sidelines. The average 12-month price target for the stock is $618.63, marking a nearly 10% upside from where shares last closed.

CMG Consensus

Seadrill Ltd (NYSE:SDRL) fell more than 5% in pre-market trading down to $5.10 after oil slipped towards a 2015 low. This drop comes as OPEC failed to come to an agreement to lower production quotas. The oil industry has been slipping for the past year and half due to excess oil supply and slowing demand. Experts do not predict this downward trend to change without OPEC action since Iranian oil will soon enter the global mix once U.S. sanctions on the country are lifted. OPEC’s current output quota of 30 million barrels per day is contributing to the excess supply of oil and the organization’s inaction to change this quota is not helping turn the tide. According to TipRanks, no analyst is currently bullish on Seadrill. One analyst is neutral on the company while two are bearish. The average 12-month price target between these analysts is $9, marking a 65% potential upside from current levels.

SDRL consensus

Arrowhead Research Corp (NASDAQ:ARWR) is up 10% in pre-market trading after the company released positive data this morning regarding its ARC-520 treatment used for HBV 1 infection. The data indicated that 78% of HBV-infected chimpanzees treated with ARC-520 and nucleoside showed signs of immune reactivation, an important step towards the cure of chronic HBV. Following these findings, CEO Christopher Anzalone, Ph.D. stated, “The hepatitis B virus causes infected cells to produce several proteins that suppress the host immune system, and, therefore, enable chronic viral infection by removing immune control. Our goal with ARC-520 is to reduce expression of those proteins and thereby enable reconstitution of the immune system. We now have shown that ARC-520 can do that, and not just in 1 or 2 infected chimps, but in 7 of the 9 chimps we treated, and this is a big deal… During the ongoing Phase 2b clinical trials, we are studying ARC-520 as monotherapy as well as in combination with other agents with the goal of identifying a regimen that leads to consistent functional cures.”

According to TipRanks’ statistics, 1 analyst has rated ARWR in the last 3 months with a Buy rating. The average 12-month price target for the stock is $20, marking a 261% upside from where shares last closed.

ARWR consensus

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