Tuesday Morning’s Market Insights: Chipotle Mexican Grill, Inc. (CMG), Relypsa Inc (RLYP), Seadrill Ltd (SDRL), NetApp Inc. (NTAP)

Chipotle Mexican Grill, Inc. (NYSE:CMG) is down 3.5% in pre-market trading after the CDC revealed it is investigating new E. Coli cases linked to the chain. Analyst John Ivankoe at J.P. Morgan downgraded the eatery to Neutral and cut his price target from $630 to $555 following the E. Coli investigations at Chipotle locations. Ivankoe comments, “Even rational and informed consumers could potentially be given reason to pause when choosing Chipotle over the plethora of fast casual competition in the marketplace.” The analyst is waiting for the dip to bottom out before he recommends buying again. According to the 26 analysts polled by TipRanks in the last 3 months, 12 are bullish on the company, 13 remain on the sidelines, and one is bearish. The average 12-month price target for the stock is $601.93, marking a 15% potential upside from where shares last closed.

Click here to see John Ivankoe’s past ratings and performance history

CMG Consensus


Relypsa Inc (NASDAQ:RLYP) is up over 3% in pre-market trading following yesterday’s announcement that Veltassa is commercially available. Veltassa was approved in late October to treat hyperkalemia, or elevated potassium levels, making it the first new therapy for this condition in the last 50 years. Liana Moussatos of Wedbush reiterated an Outperform rating on the company and raised her price target from $64 to $86, commenting that the drug is poised for a successful launch. Moussatos explains that a sales force has been educating doctors about the treatment since it was approved. She expects peak sales to reach over $1 billion in the U.S. alone. According to TipRanks, all 8 analysts are bullish on the stock with an average 12-month price target of $44.86, marking a 65% potential upside from where shares last closed.

Click here to see Liana Moussatos’ past ratings and performance history 

RLYP consensus


Seadrill Ltd (NYSE:SDRL) is up more than 3% in pre-market trading as oil prices begin to recover from hitting an 11-year low. Brent futures increased 17 cents this morning, rising to $36.52 a barrel, and poised to make daily gains for the first time in 5 days. Despite minimal gains, the oil industry continues to be plagued by a supply glut and limited demand. Furthermore, North America has been experiencing a warmer than normal winter, decreasing homes’ dependencies on oil for heating purposes. According to TipRanks, 2 analysts are bearish on SDRL while one remains neutral. The average 12-month price target for the stock is $9, marking a 146% potential upside from current levels.

SDRL consensus


NetApp Inc. (NASDAQ:NTAP) fell 3% in pre-market trading this morning after analysts expressed lukewarm sentiment regarding yesterday’s announcement that the company will buy flash storage company SolidFire for $870 million in cash. This move stems from the company’s struggles with building its own flash solutions in the past. Following the announcement, analyst Jason Ader reiterated his Underperform rating for the company with no price target. The analyst believes the deal is too late for the company and states, “From a strategic standpoint, SolidFire’s products are likely to cannibalize some of NetApp’s current revenue (especially existing AFAs) [and limit] short-term revenue gains.” He also believes that SolidFire will not protect the company from competition. Finally, he commented on the acquisition’s effect on the company’s buyout potential, stating, “NetApp’s decision to be an acquirer rather than a target may dampen its buyout prospects, which was one of the potential catalysts put forth by NetApp bulls.” According to TipRanks’ statistics, out of the 19 analysts who have rated NTAP in the past 3 months, 3 gave a Buy rating, 5 gave a Sell rating, while 11 remain on the sidelines. The average 12-month price target for the stock is $32.88, marking a 19% upside from where shares last closed.

Click here to see Jason Ader’s past ratings and performance history 

NTAP consensus

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