Incyte initiated with a Hold at Stifel. Stifel analyst Stephen Willey started Incyte with a Hold rating and $82 price target.Target $82. The analyst says the $3.5B in Jakafi-related product revenue subject to expiring exclusivity beginning in late-fiscal 2027 or early 2028 “meaningfully” offsets his enthusiasm on Incyte’s expanding pipeline opportunities. As such, he prefers to wait for a better entry point into the name. Further, Willey believes a takeover of the company is unlikely at current valuation levels. Rather, he expects Incyte to be increasingly more acquisitive given the strength of its balance sheet.
https://thefly.com/landingPageNews.php?id=2891053
Wednesday, April 10, 2019
Seattle Genetics initiated at Stifel
Seattle Genetics initiated with a Hold at Stifel. Stifel analyst Stephen Willey initiated Seattle Genetics with a Hold rating and a price target of $70, saying that while the company “commands a leadership position in the development of antibody-drug conjugate technology”, the current ADCETRIS estimates as “much-too-optimistic” in suggesting trajectory to sales of over $1B. The analyst adds that although the “recently-announced phase data for enfortumab vedotin will initiate Seattle Genetics’ transition to a multi-product commercial company”, he sees the “presumption of clinical/commercial success to be appropriately risk-adjusted in the stock at these levels.”
Rite Aid board picks 1-for-20 of reverse stock split ratio
Rite Aid Corporation announced that its board of directors has approved a reverse stock split of the company’s common stock at a ratio of 1-for-20. The reverse stock split was previously approved by stockholders at a Special Meeting of Stockholders held on March 21, 2019. Rite Aid’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange at the market open on April 22, 2019. Once effective, the reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 1.08B to approximately 54M.
Alcon initiated with an Outperform at Wells Fargo
Wells Fargo analyst Larry Biegelsen started coverage of Alcon (ALC) with an Outperform rating and $66 price target following the spinoff from Novartis (NVS). The analyst believes the shares will trade at a premium to Alcon’s large-cap medtech peers based on its leadership position in the $23B ophthalmology device market and an attractive financial profile with mid-single-digit sales growth, major margin expansion potential, and double-digit EPS growth beyond 2020. Biegelsen expects new products like PanOptix trifocal IOL, Dailies Total 1 toric, and Precision 1 to drive sales growth acceleration toward 2023.
Gilead upgraded to Buy from Neutral at UBS
UBS analyst Carter Gould upgraded Gilead Sciences to Buy from Neutral and raised his price target for the shares to $77 from $75. Following the failure of selonsertib in nonalcoholic steatohepatitis, Gilead announced “two important clinical wins” in the positive Descovy PrEP data and filgotinib Finch1/3 data, Gould tells investors in a research note. These unlock two $2B-plus revenue opportunities and go “far to de-risk” the company’s growth in 2021 and beyond, contends the analyst. Further, while the analyst expects a Q1 earnings miss, he believes 2019 estimates will move higher as NASH precommercialization spend likely comes out of guidance.
Syros Pharmaceuticals price target lowered to $24 from $28 at Piper Jaffray
Piper Jaffray analyst Edward Tenthoff lowered his price target for Syros Pharmaceuticals to $24 from $28 to account for dilution of the company’s recent $70M capital raise. The analyst, however, reiterates an Overweight rating on the name. Syros is developing potentially best-in-class CDK7 inhibitors, Tenthoff tells investors in a research note. He points out that data from the expansion cohorts in ovarian cancer are expected in Q4.
https://thefly.com/landingPageNews.php?id=2890531
https://thefly.com/landingPageNews.php?id=2890531
Evotec downgraded to Hold from Buy at Deutsche Bank
Deutsche Bank downgraded Evotec to Hold from Buy citing valuation.
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