Benzinga's Top Upgrades with Color for May 11, 2012
Listed below are today's Top Upgrades at Benzinga:
Goldman Sachs said, "We are more bullish given the strong Jakafi launch (approved for niche blood cancer, myelofibrosis (MF), partnered with NVS) and significant derisking of key pipeline asset LY3009104 (‘104, partnered with LLY, an oral Phase II drug for rheumatoid arthritis (RA)). ‘104's potential was validated with the positive FDA panel vote on May 9 on Pfizer's tofacitinib (tofa, in the same drug class (JAK inhibitor)). In addition, we now see INCY as a more attractive M&A candidate with a marketed drug and a potential blockbuster pipeline asset."
Jefferies said, "Based on the positive outcomes in yesterday's panel (18-4 vote), but more so on the positive FDA and panel commentary on the critical CV MACE question, we believe lorcaserin is likely to receive approval on the June 27 decision date. Based on the prospects for combination usage with phentermine, we assume $1.5b in 2020 sales and are raising our price target from $1 to $9."
Credit Suisse Upgrades Sun Life Financial (NYSE: SLF) to Outperform: Credit Suisse said, "Upcoming earnings/capital charges are downplayed. (1) New seg fund calibration rules are expected to have a modest impact (management ball parked $30 million); (2) guidance suggests no material need to strengthen U.S. VA lapse assumptions; and (3) management has already guided to a $60 million potential hit from URR reserve strengthening. Overall, SLF's outlook suggests significantly smaller earnings/capital charges than peers (notably MFC), which increases the stock's near-term appeal."
Credit Suisse said, "We are upgrading Bed Bath & Beyond to Outperform (from Neutral) as we believe the acquisition of Cost Plus adds some significant growth potential to what is already a very compelling but slowing growth story. Specifically, at a time of investor concern over Internet competition and tougher comparisons, this acquisition should significantly advance direct sourcing and unique merchandising opportunities for BBBY, provide a key driver for incremental comps within BBBY, improve selection and lower sourcing costs, and also help the assortment within the current World Market stores."
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