UPDATE: Bank of America Upgrades Onyx Pharmaceuticals to Buy on Kyprolis Feedback

Bank of America raises its rating on Onyx Pharmaceuticals

from Neutral to Buy and increases its price objective from $47 to $57. Bank of America comments, "We are upgrading ONXX shares from Neutral to Buy and increasing our PO from $47 to $57, driven by our more favorable long-term expectations for Kyprolis coming out of the ASCO 2012 meeting. Importantly, physician feedback has turned significantly more supportive on Kyprolis efficacy relative to the last 6-12 months, and we expect the trend to continue as experts gain experience and publish long-term follow-up results. Our sum of the parts probability adjusted DCF includes: $22/sh for Nexavar, $31/sh for Kyprolis, $6/sh for regorafinib, $8/sh in 2012YE cash, all adjusted for an expected 8% dilution from the 2016 converts and 7% from equity raise/approval milestones." ONXX closed at $43.60 on Thursday.