Jefferies bearish on biotechs, sees 6% near-term downside

|About: Biogen Inc. (BIIB)|By:, SA News Editor

Jefferies healthcare strategist Jared Holtz is a short-term biotech bear saying that profit-taking "makes sense" through this earnings season considering the sector's market-leading performance so far this year. He thinks the SPDR S&P Biotech ETF (XBI -1.3%) could drop to $75 (-6%) over the next few weeks.

Mr. Holtz believes the top biotechs have scant upside, adding that M&A activity should continue albeit with more modest premiums that recent deals.

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Source: Bloomberg

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