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What: Shares of biotech Theravance
So what: Morgan Stanley has started coverage of Theravance shares with an underweight rating, complete with a $12 price target in tow. That figure would represent a loss of 38% relative to yesterday's closing price of $19.37.
Now what: This is just one analyst's rating, and Theravance is set to report its fourth-quarter and full-year 2011 results on Feb. 9, which should shed some more light on its fundamentals. That $12 estimate is notably even lower than when shares got crushed earlier this month over safety concerns related to its Relovair experimental lung drug. With that plunge still fresh in shareholders' collective memory, a bit of bearishness goes a long way down.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.