Molycorp Inc (MCP), Workday Inc (WDAY): Four Noteworthy Upgrades That You Should Question

Great company, just a little pricey

Just to be clear, when Regeneron Pharmaceuticals Inc (NASDAQ:REGN) was trading below $220 I was writing, tweeting, and screaming to buy the stock. But now, at $260, I think it’s getting a bit expensive. Look, I love the long-term potential of this company; I think that once its large pipeline develops that it will trade considerably higher; but at 15 times sales, I think there are better short-term opportunities elsewhere. But once the company’s rheumatoid arthritis drug Sarlimab is approved, my outlook is likely to change.

Final thoughts

While I disagree with all of these upgrades, I feel more strongly about the call on Workday Inc (NYSE:WDAY).

To me, Oppenheimer’s Workday upgrade is an in the moment call, as I think it is somewhat irresponsible for a firm to be so bullish on a company with this kind of valuation. Historically, price/sales ratios over 35 are not sustainable, but to say “Outperform,” the firm is suggesting that the stock will outperform the overall market. In my opinion, this is foolish.

While I don’t agree with Byron Capital’s reasons, Molycorp Inc (NYSE:MCP) could very well be at the bottom of its freefall. As a long-term investor, I really like Regeneron Pharmaceuticals Inc (NASDAQ:REGN), but don’t consider it a “buy” right now based on current products. Therefore, this leaves Workday Inc (NYSE:WDAY), which I think is by far the worst call of the day.

Brian Nichols has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 4 Noteworthy Upgrades That You Should Question originally appeared on Fool.com is written by Brian Nichols.

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