Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Synageva BioPharma (NASDAQ: GEVA ) fell 3% today after Leerink Swann downgraded the biotechnology company from "outperform" to "market perform."
So what: Along with the downgrade, analyst Joseph Schwartz lowered his price target to $62 (from $66), representing about 7% worth of upside to yesterday's close. While contrarian traders might be attracted to the stock's October slump, Schwartz believes that Synageva's short-term appreciation prospects remain limited given a lack of positive catalysts over the next year or two.
Now what: Leerink believes the risk/reward trade-off is pretty balanced at the current levels.
"We believe that a lack of news flow and visibility into the market opportunity for sebelipase alfa may keep the stock relatively range-bound until ARISE pivotal trial data is reported in 2H14-1H15," noted Leerink. "We are updating our model and lowering our price target to $62 from $66 to reflect dilution from the company's recent equity offering."
But while Synageva is certainly too speculative for average investors, all of the downbeat short-term views of late might be providing patient biotech-savvy Fools with an attractive entry point.
A more reliable way to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.