Why Compugen Stock Got Slammed Today
The stock of clinical-stage biotech Compugen (NASDAQ: CGEN) wasn't the picture of health on Wednesday. An analyst tracking the company downgraded his recommendation on it, and investors reacted by trading the shares down by more than 10%.
Well before market open that day, Jefferies prognosticator Chris Howerton changed his Compugen recommendation to underperform -- sell, in other words -- from his previous hold. That wasn't his only ding on the stock; he also halved his price target to $0.50 per share from the preceding $1.00 (it currently trades at barely over $0.84).
Howerton's reasoning wasn't immediately apparent. While Compugen has had its struggles, the biotech still holds great promise for many, and opinion on its viability can differ considerably. For example, early in January, EF Hutton analyst Tony Butler initiated coverage of the stock with an unhesitant buy recommendation at a comparatively very high price target of $13.
Source Fool.com
