Boston, MA 06/17/2014 (wallstreetpr) – Theravance Inc (NASDAQ:THRX) stock price are back in action from the sharp fall of 22% seen at the start of the month. The stock price declined by more than 20% in the first week as the company had completed its spin-off into two separate entities. It was done as per the strategic plans of the company to stabilize growth in the coming time. Initially, the reaction was sharp, but then the stock price has managed to cover up the losses.
The downgrades
Theravance Inc (NASDAQ:THRX) is witnessing downgrades from a number of research firms. The first downgrade can be mentioned of Stifel, who changed the buy rating on the stock to hold rating. The company is not advising the clients to put in more money in the stocks. Those who already have it can hold it at a target price of $37.86. The analysts at Stifel call is just a change in valuation that made them alter the views on the stock price.
The next downgrade comes from analysts at Robert W. Baird. Initially, they had an outperform rating on the stock that is now changed to the neutral. The stock price target has seen a sharp decline from $31 t0 $21. It clearly indicates the bearish view of Robert W. Baird and analysts. Even Citigroup Inc has changed its buy rating on the stock. Now it has got hold rating on Theravance Inc (NASDAQ:THRX). For now, after the spin off the analysts are finding it hard to maintain a buy rating on the stock. However, analysts at Bank Of America share a different view. They have a buy rating on the stock.
The last call
Theravance Inc (NASDAQ:THRX) shares have gone for a spin off that resulted in a sharp decline in its stock price. The stock has managed to cover part of losses. However, the company will need some quarters to stabilize the spin off business. Till that time, it is best to stay away from the stock.
