UPDATE: Jefferies Downgrades Onyx Pharmaceuticals on Limited Upside

In a report published on Friday, Jefferies analyst Biren Amin downgraded Onyx Pharmaceuticals ONXX from Buy to Hold and raised the price target on the company from $104 to $132.

In the report, Jefferies stated, "Given the M&A interest in ONXX we are downgrading to Hold on valuation and raising our PT to $132 (v. $104 prev), which incorporates a lower discount rate to reflect the potential M&A transaction and also includes outer year royalties from palbociclib. We believe upside from current valuation may be limited given the likelihood of a transaction closing between ~$140-145/share."

Onyx Pharmaceuticals closed on Thursday at $134.40.