Share on StockTwits

Cubist Pharmaceuticals (NASDAQ:CBST) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Monday. They currently have a $58.00 price target on the stock. Zacks‘s price objective points to a potential downside of 8.50% from the stock’s previous close.

Zacks’ analyst wrote, “Cubist performed disappointingly in the second quarter of 2014 with both revenues and earnings coming in below expectations. Soft sales of Cubicin hurt results during the quarter. Dificid sales were also modest in the quarter. The company’s earnings of $0.23 per share missed the Zacks Consensus Estimate by $0.14 per share. Quarterly revenues of $294.4 million also fell well short of the Zacks Consensus Estimate of $299 million. The voluntary recall of Cubicin in Aug 2014 due to safety concerns is concerning as Cubicin is the company’s key growth engine. In view of the challenges confronting the stock, we are downgrading it to Underperform. Our target price is $58.00 per share.”

Shares of Cubist Pharmaceuticals (NASDAQ:CBST) traded up 1.99% during mid-day trading on Monday, hitting $64.65. 474,579 shares of the company’s stock traded hands. Cubist Pharmaceuticals has a 1-year low of $58.50 and a 1-year high of $82.12. The stock has a 50-day moving average of $64.68 and a 200-day moving average of $69.53. The company has a market cap of $4.896 billion and a P/E ratio of 556.05.

Cubist Pharmaceuticals (NASDAQ:CBST) last posted its quarterly earnings results on Tuesday, July 22nd. The company reported $0.23 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.01 by $0.22. The company had revenue of $294.40 million for the quarter, compared to the consensus estimate of $299.60 million. During the same quarter in the prior year, the company posted $0.42 earnings per share. The company’s quarterly revenue was up 13.8% on a year-over-year basis. Analysts expect that Cubist Pharmaceuticals will post $0.71 EPS for the current fiscal year.

Several other analysts have also recently commented on the stock. Analysts at JMP Securities downgraded shares of Cubist Pharmaceuticals from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 23rd. They now have a $80.00 price target on the stock. Separately, analysts at Aegis reiterated a “positive” rating on shares of Cubist Pharmaceuticals in a research note on Monday, June 23rd. Finally, analysts at Jefferies Group reiterated a “buy” rating on shares of Cubist Pharmaceuticals in a research note on Monday, June 23rd. They now have a $88.00 price target on the stock, up previously from $87.00. One research analyst has rated the stock with a sell rating, three have issued a hold rating and nine have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average target price of $79.64.

Cubist Pharmaceuticals, Inc (NASDAQ:CBST) is a biopharmaceutical company focused on the research, development and commercialization of therapies to treat serious medical conditions in acutely ill patients who are hospitalized or are being treated in other acute care settings.

To view Zacks’ full report, visit Zacks’ official website.

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.