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Leerink Is Changing Targets At These 7 Biotechs

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In a report published Tuesday, a team of Leerink analysts altered their price targets on seven stocks within the biotech sector.

Here is a summary of the changes:

Aetna: Bullish On M&A Front

Shares of Aetna Inc (NYSE: AET) were maintained with an Outperform rating with a price target raised to $135 from a previous $130.

The analysts noted that a recent meeting with the company's management were "encouraging" as utilization fears in Medicare were alleviated, while Commercial utilization remains "well controlled."

In addition, the company's CEO Mark Bertolini asserted that government business is the focus for inorganic growth and consolidation remains "likely."

Actavis: Strong Allergan Performance During Transition

Shares of Actavis plc (NYSE: ACT) were maintained with an Outperform rating with a price target raised to $352 from a previous $348.

The analysts are "most encouraged" to see no disruption to Allergan during the transition quarter, with Allergan sales on a constant currency basis rising 13 percent. Moreover, the integration is going "smoothly" and alleviates concerns regarding the transition.

Diplomat Pharmacy: Q1 Earnings ‘Well Ahead'

Shares of Diplomat Pharmacy Inc (NYSE: DPLO) were maintained with an Outperform rating with a price target raised to $40 from a previous a $36.

Diplomat Pharmacy reported its first quarter results on Monday, with adjusted earnings per share of $0.09, a penny better than analyst expectations. Revenue of $625 million increased an "impressive" 34 percent and was slightly ahead of the analysts expectations.

More encouragingly, management raised its full year 2015 revenue guidance by $100 million and all other guided metrics were also increased including earnings per share, EBITDA and net income. As such, the analysts remain positive on the name and the strong first quarter results coupled with the increased guidance deserve a boost to the price target.

Endo International: Active Year Of M&A

Shares of Endo International plc (NASDAQ: ENDP) were maintained with an Outperform rating with a price target slightly lowered to $100 from a previous $101.

According to the analysts, the company's first quarter results were "okay" driven by a lower-than-expected operating expenditure. However, the company's guidance raise of $0.05 was "underwhelming."

Nevertheless, the analysts noted the company remains well positioned to continue executing on the M&A front and will likely participate in two to three additional deals.

Foundation Medicine: Q1 Clinical Volume ‘Light'

Shares of Foundation Medicine Inc (NASDAQ: FMI) were maintained with a Market Perform rating with a price target lowered to $46 from a previous $50.

According to the analysts, Foundation Medicine reported first quarter revenue was a "tale of two halves." The portion of the business that serves pharma customers reported $8.2 million in revenue, exceeding the analyst's $6.5 million estimate while clinical revenue of $11.1 million was short of the analysts $11.6 million estimate (and the Street's estimate of $14 million).

Moreover, clinical tests of 7,854 fell short of the analysts 8,321 target, implying competition is heating up in the space. As such, the analysts lowered their clinical volume assumptions for the remainder of the year and will maintain such a position until there is evidence that Foundation Medicine's efforts will reaccelerate growth.

Karyopharm Therapeutics: Upside Possible From Selinexor

Shares of Karyopharm Therapeutics Inc (NASDAQ: KPTI) were maintained with an Outperform rating with a price target lowered to $58 from a previous $60.

According to the analysts, Karyiopharm's first quarter print and pipeline update shows the company continues to drive development of selinexor forward "aggressively." With more than 40 selinexor clinical trials planned an ongoing (with over 750 patients treated to date) there are "numerous sources" of upside to the current valuation.

The analysts price target reduction was attributed to a dilution in the first quarter as the company raised $91 million in a secondary offering.

Nevro: Outlook Higher With Early Senza Approval

Shares of Nevro Corp (NYSE: NVRO) were maintained with an Outperform rating with a price target raised to $70.

According to the analysts, the company's third consecutive quarterly outperformance (in as many quarters since its been public) highlights their views that accelerating adoption momentum of Senza.

In addition, the company "is on the cusp" of achieving "meaningful" market share gains in the $1.2 billion U.S. spinal cord stimulation market while the differentiated Senza high frequency (HF10) therapy is a likely market growth stimulator.

Latest Ratings for AET

DateFirmActionFromTo
Oct 2018MaintainsNeutralNeutral
Oct 2018MaintainsNeutralNeutral
Oct 2018DowngradesOverweightNeutral

View More Analyst Ratings for AET
View the Latest Analyst Ratings

Posted-In: Leerink Mark Bertolini selinexor SenzaAnalyst Color Biotech Price Target Analyst Ratings General

 

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