Nasdaq Stocks

Tenet To Sell Its Urgent Care Platform To FastMed; Mizuho Raises PT

5 years 10 months ago

Tenet Healthcare Corp. has inked a deal with FastMed to sell its urgent care platform for an undisclosed amount. The healthcare company expects the deal to close in the first quarter of 2021. Tenet stock closed 2.1% lower on Friday.

Tenet’s (THC) urgent care platform, which is operated by the CareSpot and MedPost brands, is well-known for high-quality medical care and would thus complement FastMed’s portfolio, the company said. The company said that, “The transaction will add 87 CareSpot and MedPost centers, increasing patient access to FastMed’s healthcare services in Arizona and Texas, while enabling the company to expand into Florida and California where most of the acquired centers are located.”

On Dec. 10, Tenet signed an agreement to acquire a portfolio of up to 45 ambulatory surgery centers from SurgCenter Development for "$1.1 billion in cash and the assumption of approximately $18 million of center-level debt." (See THC stock analysis on TipRanks)

Following the portfolio acquisition, Mizuho Securities analyst Ann Hynes said that the outlook for Tenet stock has improved. Hynes believes that the deal would help the company to diversify and generate significant earnings accretion. The analyst raised the stock’s price target to $48 (19.2% upside potential) from $32 and maintained a Buy rating.

Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys, 4 Holds and 1 Sell. The average price target stands at $42.82 and implies upside potential of about 6.4% to current levels. Shares were up 5.9% year-to-date.

Progressive’s Profit Soars 142% in November; Analyst Lifts PT

Nasdaq Stocks

5 years 10 months ago

Progressive Corp. reported triple-digit earnings growth in November, both on a year-over-year and sequential basis. The insurance company’s earnings per share last month surged about 142% to $1.26 from $0.52 year-on-year.

Progressive’s (PGR) EPS in November soared 215% from the $0.40 posted in October.

During the reported period, the company's net premium earned rose 11% year-over-year, while premium written grew 14% over the same period. Combined ratio (percentage of premiums paid out as claims and expenses) declined to 86.6 in November from 94.1 in the prior-year period. Progressive’s policies-in-force in November were 11% higher than in the year-ago period.

The company said, “Excluding the impact of catastrophe losses in both November 2020 and 2019, our companywide loss/LAE ratio was 6.1 points lower than November last year, in part reflecting continued lower auto accident frequency on a year-over-year basis.” (See PGR stock analysis on TipRanks)

Wells Fargo analyst Elyse Greenspan raised the stock’s price target from $96 to $99 (2.1% upside potential) and maintained a Hold rating. Greenspan noted that the November results reflect “continued favorable frequency benefits in early 2021 and stronger NPW [net premium written] growth in commercial auto.” The analyst said, “The earnings beat was counter-balanced by the slowdown in PIF [policies-in-force].”

She added, “We are seeing rate declines in the personal auto sector and the level of rate should slow as the industry factors in the Covid-19 favorable frequency levels. Further, as miles driven rebound from Covid-19 lows the favorable frequency trends should subside from here.”

Meanwhile, most of the Street is in line with Wells Fargo's outlook with a Hold analyst consensus. That's based on 5 Holds, 2 Buys and 1 Sell. The average price target stands at $97.38 and implies that shares are fully priced at current levels. Shares have gained 33.9% year-to-date.

Looking For The Best Stocks To Buy Before 2021? 1 Up By 400%+ YTD

Nasdaq Stocks

5 years 10 months ago

Are These The Best Tech Stocks To Watch Right Now?Throughout the pandemic, tech stocks have been the go-to stocks for investors in the stock market. This is because of the high returns that these stocks can bring. Rally after rally, tech stocks have shown no signs of stopping. Th

3 Top Tech Stocks To Watch This Week; 2 Up By 100%+ Since March

Nasdaq Stocks

5 years 10 months ago

Are These Top Tech Stocks On Your Watchlist This Short Holiday Week?For the past year, you can’t deny that tech stocks have been dominating the stock market. Although the coronavirus pandemic halted most industries, those in the tech industry pressed on and continued to inn

American Express Invests in Crypto Trading Platform FalconX; Street Says Hold

Nasdaq Stocks

5 years 10 months ago

American Express has invested an undisclosed amount in crypto-trading platform, FalconX.

Trading as principal, FalconX provides institutional clients with access to cryptocurrency markets through a single platform for trading, credit, and clearing.

American Express (AXP) has joined a variety of investors, adding to the $17 million in funding that FalconX announced in May. Since then, FalconX has seen its revenue grow 350%, while its transaction volumes have tripled to around $3 billion per month, making it one of the largest full-service providers.

Meanwhile, FalconX Credit, which enables clients to extend settlement, has generated over $1 billion in credit transactions during November 2020.

“We’re seeing growing interest from traditional asset managers who are adding cryptocurrencies as an inflationary hedge, catalyzed by recent macro-economic policies,” said Falcon CEO Raghu Yarlagadda. “It is a great pleasure to welcome American Express Ventures as we continue to invest in expanding FalconX’s product offering.”

This is not the first time that American Express has shown interest in the blockchain/crypto space. According to a Bloomberg report, “Amex Ventures remains an investor in Abra, which allows for trading of cryptocurrencies. AmEx has also tested using blockchain to let merchants create tailored offers involving membership rewards points, and enabling international business-to-business payments.” (See AXP stock analysis on TipRanks)

Last week, Citigroup analyst Keith Horowitz reiterated a Hold rating on the stock and raised his price target from $105 to $125. The new PT implies upside potential of around 6%.

Overall, the consensus among analysts is a Hold based on 4 Buys, 6 Holds and 3 Sells. The average price target of $117.25 suggests that shares are fully priced at current levels.

Aurinia Inks Voclosporin Deal With Otsuka For Europe, Japan; Analyst Sees 53% Upside

Nasdaq Stocks

5 years 10 months ago

Aurinia Pharmaceuticals has inked a collaboration and license agreement with Japan’s Otsuka Pharmaceutical Co. for the development and sale of oral voclosporin for the treatment of Lupus Nephritis (LN) outside the US.

Specifically, Aurinia (AUPH) and partner Otsuka will develop and commercialize oral voclosporin across the European Union (EU), Japan, as well as the UK, Russia, Switzerland, Norway, Belarus, Iceland, Liechtenstein and the Ukraine. As part of the agreement, Aurinia will get an upfront cash payment of $50 million with the potential of receiving up to an additional $50 million in regulatory and reimbursement milestone payments.

Additionally, Aurinia will be eligible to get tiered royalties ranging from 10% to 20% on net sales, as well as other milestone payments based on the attainment of annual sales by Otsuka.

Voclosporin is an investigational, orally administered treatment to treat patients with LN, which is a life-threatening chronic inflammation of the kidneys in patients with lupus, a disorder in which the body’s immune system attacks itself.

“Otsuka, with strong capabilities in nephrology and rare disease, is an ideal strategic partner to introduce voclosporin in Europe and Japan,” said Aurinia CEO Peter Greenleaf. “This collaboration will provide Aurinia with additional non-dilutive funds to focus on the successful US launch of voclosporin and support plans to build our pipeline, while ensuring more lupus nephritis patients around the world can benefit from this potentially life-saving medication.”

Otsuka, which expects to file a marketing authorization application (MAA) with the European Medicines Agency (EMA) in the second quarter of 2021, will also manage the filing of voclosporin for LN with the Pharmaceuticals Medical Devices Agency (PDMA) in Japan at a later date, the companies said in a statement.

Voclosporin is currently under review by the US Food and Drug Administration (FDA) with an assigned Prescription Drug User Fee Act (PDUFA) target action date set for January 22.

On a year-to-date basis, the stock is now trading down 36% yet the Street has a bullish Strong Buy analyst consensus on Aurinia. That’s with 6 recent Buy ratings. The average analyst price target of $23.77 indicates upside potential of over 82% lies ahead.

In response to the collaboration news, Oppenheimer analyst Justin Kim remains enthusiastic and reiterated a Buy rating on the stock with a $20 price target (53% upside potential) citing the potential for voclosporin to generate blockbuster sales in the long-term.

“While investors have scrutinized the deal's $50 million upfront payment myopicly, securement of a global ex-US partner for renal diseases, particularly for this indication, we believe is an achievement,” Kim commented in a note to investors. “Given the complexity of ex-US commercialization, greater price sensitivity for immunological therapies, we have viewed the US opportunity as ~70–80% of the global opportunity for voclosporin.”

“As Aurinia positions itself for a potential approval next month and continues to check the boxes for a strong commercial launch, we stay bullish,” the analyst summed up. (See AUPH stock analysis on TipRanks).

Ormat Buys Energy Storage Asset in Texas From Con Edison

Nasdaq Stocks

5 years 10 months ago

Ormat Technologies Inc, an Israeli geothermal firm, has announced the acquisition of a shovel-ready energy storage asset in Upton County, Texas, from Con Edison Development.

Ormat’s (ORA) wholly owned subsidiary, Viridity Energy Solutions Inc, will design, build, own and operate a 25 MW battery energy storage system (BESS) project at the site and Ormat is targeting commercial operation of the BESS by the end of 2021.

The company stated that the BESS facility will provide ancillary services and energy optimization to the wholesale markets managed by the Electricity Reliability Council of Texas (ERCOT).

Texas is currently experiencing growth in renewable energy deployment and the BESS facility will play an increasing role in allowing ERCOT to absorb such intermittent generators, while also coping with increased frequency of extreme weather events, the company said.

“This represents our second energy storage project in Texas,” said Ormat CEO Doron Blachar. “With this second project, Ormat strengthens its position as one of the early movers in the ERCOT energy storage market.”

Blachar noted that the "acquisition reinforces our target to add between 80 MW to 175 MW revenue-generating energy storage assets by year end 2022 and is in-line with our stated strategy to build, own and operate energy storage assets in strategic high growth markets including Texas."

Ormat shares rose over 5% on Friday to $86.52 giving it a market cap of around $5 billion. (See ORA stock analysis on TipRanks)

On Dec. 9, J.P. Morgan analyst Mark Strouse raised the stock's price target from $78 to $86 and reiterated a Buy rating.

Consensus among analysts is a Moderate Buy based on 2 recent Buy ratings. Meanwhile, the average price target of $80 implies downside risk of around 8% over the next 12 months.

Microsoft To Develop Its Own Chips For Servers, PCs – Report

Nasdaq Stocks

5 years 10 months ago

Microsoft Corp. is working on in-house processor designs for use in server computers that run its cloud services, as the tech giant seeks to reduce reliance on Intel Corp.’s chip technology, Bloomberg has learnt.

Intel shares closed 6.3% lower on Friday. According to the report, the world’s largest software maker is deploying Arm Ltd. designs to develop a processor that will be used in its data centers. Additionally, Microsoft (MSFT) is exploring using another chip that would power some of its Surface line of personal computers, the Bloomberg report said.

The move is a major commitment by Microsoft to supplying itself with the most important piece of the hardware it uses and potentially bringing cost and performance advantages over off-the-shelf silicon primarily provided by Intel. With this move, Microsoft is following into the footsteps of other cloud-computing rivals such as Amazon, who are already exploring similar paths.

Representatives of Microsoft and Arm declined to comment when approached by Bloomberg on whether Microsoft is working on server and PC processors.

“Because silicon is a foundational building block for technology, we’re continuing to invest in our own capabilities in areas like design, manufacturing and tools, while also fostering and strengthening partnerships with a wide range of chip providers,” Microsoft spokesman Frank Shaw told Bloomberg.

Should Microsoft decide to develop with its own chip for PCs it would be following Apple Inc., which is moving its entire Mac line away from Intel processors.

Shares of Microsoft have gained about 38% so far this year as the tech giant continues to benefit from increased demand for remote services and the shift to cloud solutions during the coronavirus pandemic. (See Microsoft stock analysis on TipRanks)

However, the stock is up a mere 2.7% over the past month, which prompted Morgan Stanley analyst Keith Weiss to lift his price target to $260 (19%) from $249, as the analyst sees the potential for MSFT shares to get "unstuck".

Weiss reiterated a Buy rating on MSFT calling the stock a top pick among software names. He noted that the stock has been stuck as investors have been cautious and voiced concerns that after a two-year period when all of Microsoft's metrics were up, the past two quarters have been more mixed, which could result in another mixed print.

Meanwhile, Weiss believes that all of this has already been well incorporated into consensus estimates, leaving room for upside.

The rest of the Street firmly shares Morgan Stanley’s bullish outlook on the stock. The Strong Buy analyst consensus is based on a stellar 23 back-to-back Buy ratings. The average price target of $249.20 implies another 14% upside potential lies ahead over the coming year.

PPG To Snap Up Tikkurila In $1.35B Deal; Street Is Cautiously Optimistic

Nasdaq Stocks

5 years 10 months ago

PPG Industries has entered into a definitive agreement to snap up Finnish paint and coatings producer Tikkurila, in an all-cash deal valued at €1.1 billion ($1.35 billion), including the assumption of debt.

Under the terms of the agreement, PPG (PPG) will start a tender offer to buy all of the issued and outstanding stock of Tikkurila at €25 in cash for each share. The offer price represents a premium of about 66.2% to the company’s closing price on December 17. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.

The paints and specialty materials supplier said that the combination with Tikkurila will strengthen and broaden its geographic footprint as well as its product offerings in several northern and eastern European countries where it has minimal decorative presence.

“We will be able to provide customers with even more paint and coatings options by bringing together Tikkurila’s high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG’s well-respected industrial and protective coatings,” said PPG CEO Michael McGarry. “In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers.”

Founded in 1862, Tikkurila is headquartered in Vantaa, Finland with operations in 11 countries. More than 80% of the company’s revenue is coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its premium brands include Tikkurila, ALCRO, and Beckers. Tikkurila employs about 2,700 people globally and reported sales of about €564 million in 2019.

The buyout deal comes less than a month after PPG announced the acquisition of Ennis-Flint, a global coatings manufacturer with a portfolio of pavement marking products, for about $1.15 billion.

Following the deal announcement, Deutsche Bank analyst David Begleiter lifted the stock's price target to $165 (13.5% upside potential) from $155 and maintained a Buy rating.

Begleiter said that PPG's acquisition of Ennis-Flint is "strategically sound " since it strengthens the company's mobility coatings franchise and puts the business on a pathway for for accelerated growth as autonomous driving boosts the need for wider, more visible, more reflective and more durable roadway markings. (See PPG stock analysis on TipRanks)

Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 5 Holds. With shares up about 9% year-to-date, the average price target of $151.09, now implies upside potential of 3.9% to current levels.

Blackstone In Talks To Merge Alight With Foley – Report

Nasdaq Stocks

5 years 10 months ago

Private Equity firm Blackstone Group Inc. is in negotiations to merge Alight Solutions LLC with blank-check acquisition firm, Foley Trasimene Acquisition Corp, Reuters has learnt.

According to the talks, the merger if successful, would result in Alight becoming a publicly-listed company valued at over $8 billion, including debt, Reuters said. Blackstone Group (BX) acquired Alight in 2017 from insurance broker AON Plc for around $5 billion. According to the company’s website, Alight offers cloud-based benefits administration and human resources services to 30 million people in 188 countries.

A blank-check acquisition firm is a public company that is created specifically for the purpose of buying or merging with another company. Foley Trasimene was created for this purpose and raised $900 million in an initial public offering (IPO) in May without telling investors what company it intended merging with, according to the Reuters report.

All the companies involved declined to comment when approached by Reuters and questioned about a possible deal. (See BX stock analysis on TipRanks)

Barclays analyst Jeremy Campbell reiterated his Buy rating on BX last week and raised the price target from $64 to $70 (8% upside potential).

Consensus among analysts is a Moderate Buy based on 5 Buys and 3 Holds. The average price target of $62.81 implies downside risk of around 3% over the next 12 months.

Citigroup To Resume Dividend, Share Buyback Plans in 1Q; Shares Climb 5%

Nasdaq Stocks

5 years 10 months ago

Citigroup said on Friday that it will resume its share buyback plan and start to pay a $0.51 dividend per share from 1Q through 3Q of fiscal 2021. Shares gained 5.4% in after-hours trading.

Citigroup’s (C) announcement comes after the Federal Reserve released a stress test report enabling the investment bank to take certain capital actions during Q1 of fiscal 2021, subject to certain restrictions.

The Fed also extended the time period for notification regarding the recalculation of Citigroup's Stress Capital Buffer requirement through Mar. 31, 2021.

“Citi is committed to continuing to play an active role in supporting the economic recovery. At the same time, we will continue our planned capital actions through the remaining quarters of the 2020 CCAR cycle (i.e., 1Q 2021 through 3Q 2021), which include quarterly common dividends of $0.51 per share, and it is our intention to resume repurchases during that timeframe as well, subject to financial conditions, any future changes to the Stress Capital Buffer and approval from Citi's Board of Directors.” said Citigroup CEO Michael Corbat.

The stock has lost 26% year-to-date and is trading at a discount of 29% to its 52-week high. (See C stock analysis on TipRanks)

Piper Sandler analyst Jeffery Harte last week raised the stock's price target from $56 to $68 and reiterated a Buy rating. This target implies that investors could be yielding a 15% gain from the shares over the coming 12 months.

Harte views the stock as attractive in light of the company’s recent management commentary, which the analyst believes improves earnings visibility. The stock is “undervalued and attractive heading into 2021,” he summed up.

From the rest of the Street, the stock scores a Strong Buy based on 13 Buys and 3 Holds. The average price target of $66.23 implies upside potential of 12% to current levels.

Morgan Stanley To Kick Off $10B Share Buyback After Fed Call; Shares Jump 5%

Nasdaq Stocks

5 years 10 months ago

Morgan Stanley announced that its board has approved a $10 billion share buy-back program, which is set to start in January, after the Federal Reserve eased some restrictions imposed on banks during the coronavirus pandemic. Shares climbed 5.2% in Friday’s after-market trading.

Morgan Stanley (MS) said that the repurchases of outstanding common stock of up to $10 billion in 2021 was authorized in recognition of the bank’s “significant capital buffer.”

The move comes after the Federal Reserve Board on Friday released a second round of bank stress test results this year, which concluded that large banks had strong capital levels, despite setting aside about $100 billion in loan loss reserves. In response to the pandemic-led economic crisis, the Fed had earlier this year put several restrictions in place to ensure that banks would preserve capital, including suspending share repurchases and limiting dividends.

“The results announced today allow us to restart our share repurchase program in January, and we expect to continue the program throughout the coming year,” Morgan Stanley CEO James P. Gorman. “With over 400bps of excess capital, we are in a position to continue to invest in our businesses while returning capital to shareholders and absorbing market volatility.”

The repurchases will be subject to market conditions and the investment bank’s financial performance. Repurchases under the program in any period will be consistent with Morgan Stanley’s stress capital buffer (SCB) requirement and other regulatory capital standards.

The Fed determined that for the first quarter of 2021, both dividends and share repurchases will be limited to an amount based on income over the past year. If a firm does not earn income, it will not be able to pay a dividend or make repurchases.

MS shares have gained 25% so far this year and the stock scores a cautiously optimistic Moderate Buy analyst consensus. That’s based on 7 Buy ratings versus 3 Hold ratings assigned in the last three months. (See Morgan Stanley stock analysis on TipRanks)

Looking ahead, the average analyst price target of $63 suggests shares are more than fully priced at current levels and could see some downward correction of 1.8%.

Meanwhile, Credit Suisse analyst Susan Roth Katzke this month raised the stock's price target to $74 from $60 and reiterated a Buy rating.

Katzke argues that with the prospect of a COVID-19 vaccine on the horizon and a shift in risks, there is "more upside and less downside" around base case estimates in the US large cap bank sector.

BNY Mellon To Resume Stock Buybacks; Shares Rise 5%

Nasdaq Stocks

5 years 10 months ago

BNY Mellon, on Friday, announced the potential resumption of its share buybacks from the Q1 of 2021 and said that it expects to maintain its stock dividend following the US Federal Reserve's bank stress test results. Shares rose 5.1% in after-hours trading.

BNY Mellon (BK) stated that the restriction on the buybacks applicable to the investment banking services holding company during Q3 and Q4 of fiscal 2020, will be revised for the Q1 of fiscal 2021.

The Fed’s decision was backed by the resiliency and strength shown by BNY Mellon business model and capital position in times of stress, the company stated. As of Sept. 30, BNY Mellon had $38.6 trillion in assets under custody and administration, and $2 trillion in assets under management.

"We are pleased to announce our intention to resume our common share buyback program. With these modifications, we expect to maintain strong capital ratios while also delivering an attractive capital return back to our shareholders." said BNY Mellon CEO Todd Gibbons.

The stock price has lost 19% year-to-date and is trading at a discount of 21% to its 52-week high. (See BK stock analysis on TipRanks)

Last week, Deutsche Bank analyst Brian Bedell raised the stock's price target from $46 to $51 and reiterated a Buy rating. The new PT implies that investors could be reaping a 25% gain over the coming 12 months.

Bedell noted, that rising long-term bond yields, continued appreciation of equity markets and continued elevated trading volumes favored stocks that have been the most hampered by low interest rates in the downturn earlier this year, along with "high quality companies levered to improving markets.”

From the rest of the Street, the stock scores a cautiously optimistic consensus of a Moderate Buy based on 4 Buys, 5 Holds, and 1 Sell. The average price target of $45.11 implies upside potential of 10.6% to current levels.

Boeing ‘Inappropriately Coached’ Pilots In 737 MAX Test – Report

Nasdaq Stocks

5 years 10 months ago

Boeing officials “inappropriately coached” test pilots during recertification efforts following two fatal crashes of the 737 MAX aircraft, which killed 346 people, Reuters reported citing a congressional report released on Friday.

The report stated that Boeing (BA) and the Federal Aviation Administration (FAA) “had established a pre-determined outcome to reaffirm a long-held human factor assumption related to pilot reaction time ... It appears, in this instance, FAA and Boeing were attempting to cover up important information that may have contributed to the 737 MAX tragedies.”

Boeing responded that it takes “seriously the committee’s findings and will continue to review the report in full,” while the FAA announced that it is studying the report which contains a number unsubstantiated allegations, according to Reuters.

Several whistleblowers have come forward claiming that both Boeing officials and FAA senior management worked together to manipulate recertification tests, the report claimed.

Both the Senate committee and the House of Representatives unanimously passed bills last month to reform FAA certification procedures as well as granting new protection to whistleblowers, Reuters said. (See BA stock analysis on TipRanks)

Last week, Morgan Stanley analyst Kristine Liwag reiterated a Sell rating on the stock with a price target of $165 (25% downside potential). Liwag believes the company will need to raise equity to reduce its $61 billion debt load.

Overall, consensus among analysts is a Moderate Buy based on 9 Buys, 8 Holds and 3 Sells. The average price target stands at $220.65 over the next 12 months, suggesting that shares are fully priced at current levels. The stock has lost 32% of its value this year.

Moderna’s Covid-19 Vaccine Wins FDA Emergency Use Approval

Nasdaq Stocks

5 years 10 months ago

Moderna announced on Friday that the U.S. Food and Drug Administration (FDA) has approved the emergency use of its COVID-19 vaccine mRNA-1273 in patients aged 18 years and older. Shares gained 2.2% in after-hours trading.

Following the approval, Moderna (MRNA) now plans to deliver about 20 million doses to the U.S. government by the end of Dec. 2020. To date, the U.S. government has ordered 200 million doses from the biotechnology company and has retained the option to purchase up to an additional 300 million doses.

The company also seeks to submit a Biologics License Application (BLA) for mRNA-1273 to the FDA for full U.S. licensure in 2021.

Earlier that day, Moderna announced that the European Commission had exercised its option to purchase an additional 80 million doses of the COVID-19 vaccine, taking the total order tally to 160 million doses.

“It has been a 10-year scientific, entrepreneurial and medical journey and I am thankful to all those who have helped us get here. We remain focused on scaling up manufacturing to help us protect as many people as we can from this terrible disease,” said Moderna’s CEO Stéphane Bancel.

The stock price has surged 617% year-to-date and is trading at a discount of 21.4% to its 52-week high. (See MRNA stock analysis on TipRanks)

On Dec. 18, Barclays analyst Gena Wang doubled the stock's price target from $84 to $169 and reiterated a Buy rating.

Wang’s recommendation was backed by the FDA advisory committee’s vote in favor of emergency-use authorization for the company’s COVID-19 vaccine.

The new price target, which implies an upside potential of 21%, reflects the likely approval of Moderna's COVID-19 vaccine, healthier gross margin, and "validation" for a wider market opportunity, the analyst wrote in a note to investors.

From the rest of the Street, the stock scores a cautiously optimistic consensus of a Moderate Buy based on 7 Buys, 7 Holds, and 2 Sells. The average price target of $138.50 implies downside potential of 1.2% to current levels.

FibroGen Sinks 11% As FDA Delays Roxadustat Action Date

Nasdaq Stocks

5 years 10 months ago

Shares of FibroGen, tanked 11% in Friday's extended trading session after the biopharma company said that the US Food and Drug Administration (FDA), decided to extend the review period of the NDA (New Drug Application) for its Roxadustat used in the treatment of anemia in patients with chronic kidney disease (CKD).

Specifically, the Prescription Drug User Fee Act (PDUFA) action date was extended by the FDA to Mar. 20, 2021, after FibroGen (FGEN) submitted additional analysis of Roxadustat clinical data. Roxadustat is an orally administered, small molecule hypoxia-inducible factor (HIF) stabilizer for treating anemia in patients with CKD.

The finalization of the Prescription Drug User Fee Act (PDUFA) action date was previously set for Dec. 20, 2020. FibroGen is focused on the development of chronic and life-threatening treatments such as anemia, idiopathic pulmonary fibrosis, and pancreatic cancer.

“FibroGen is working closely with the FDA, in collaboration with our partner, AstraZeneca, to support the final review of the new drug application for Roxadustat,” said FibroGen’s CEO Enrique Conterno.

“There is significant unmet medical need for the treatment of anemia of CKD, and we are committed to bringing roxadustat to patients in the U.S. as soon as possible.” added Conterno.

The stock price has gained close to 3% year-to-date and is trading at a discount of 15% to its 52-week high. (See FGEN stock analysis on TipRanks)

Just a month back, Mizuho Securities analyst Difei Yang reiterated a Buy rating on FibroGen with a price target of $72. This target implies that investors could be reaping a 64% gain over the coming 12 months.

Yang’s rating was backed by the approval of Roxadustat in Japan for the treatment of non-dialysis-dependent (NDD) CKD, with the key catalyst being the FDA action date for Roxadustat.

“The shares appear to have 50-60% probability of FDA approval priced in, and we believe Roxa is highly likely to get the FDA approval, ~90% PoS.” added Yang.

From the rest of the Street, the stock scores a cautiously optimistic consensus of a Moderate Buy based on 2 Buys, 1 Hold, and 1 Sell. The average price target of $71 implies an upside potential of 61.5% to current levels.

Nike’s Online Sales Fuel 2Q Beat; Shares Jump 5.6%

Nasdaq Stocks

5 years 10 months ago

Shares of Nike rose 5.6% in Friday’s extended trading session after the athletic apparel giant reported better-than-expected 2Q results led by a surge in its digital sales.

Nike’s (NKE) revenues of $11.2 billion surpassed analysts’ expectations of $10.6 billion and jumped 9% year-over-year. The outperformance was driven by strong digital sales growth of 84% and higher revenue growth across all geographies, especially Greater China. Nike's direct sales grew by 32% in 2Q. Notably, the company's revenue returned to a growth path in 2Q after posting declines in the previous two consecutive quarters.

Nike posted adjusted earnings increased 11.4% to $0.78 per share year-over-year, exceeding the Street’s estimates of $0.63 per share. The company said it saw improved sales and lower selling and administrative expenses, which were partially offset by a decline in gross margins.

Nike’s CFO Matt Friend said, “With healthy inventory positions across all geographies, our return to growth is a testament to our digital strength, as well as our disciplined marketplace and financial management.” (See NKE stock analysis on TipRanks)

Following the 2Q results, Guggenheim analyst Robert Drbul maintained a Buy rating and a price target of $165 (20.2% upside potential) on the stock. Drbul said that “Nike remains our Best Idea.” The analyst added, “Nike is the leader in an athletic (and broader active/athleisure) industry with favorable secular tailwinds. The brand commands dominant market share, which we expect will grow materially from here as digital scales further, new product innovation remains robust, and heavy investment behind key growth drivers continues, while some global peers operate more cost-consciously in an uncertain environment.”

Most of the Street shares Drbul’s bullish outlook on the stock. The Strong Buy analyst consensus is based on 26 Buys and 2 Holds. The average price target stands at $151.61 and implies upside potential of about 10.4% to current levels. Shares have advanced 35.5% on a year-to-date basis.

Darden Dips On Dim Outlook After 2Q Sales Miss; Stephens Lifts PT

Nasdaq Stocks

5 years 10 months ago

Shares of Darden Restaurants closed 2.1% lower on Friday after the multi-brand restaurant operator reported lower-than-expected sales results for 2Q and provided a dim outlook for 3Q.

Darden’s (DRI) 2Q revenue of $1.66 billion missed analysts’ expectations of $1.68 billion. Quarterly sales declined 19.4% year-over-year mainly due to “negative blended same-restaurant sales of 20.6%, which were partially offset by the addition of 19 net new restaurants.”

Darden’s 2Q earnings per share dropped 33.9% to $0.74 but beat the Street's estimates of $0.71.

"I was pleased with our ability to once again deliver strong profitability in an unpredictable sales environment," said CEO Gene Lee. He further added, "We continue to view this environment as a rare opportunity to meaningfully transform our business for long-term growth. Our brands made additional strides to invest in and strengthen their businesses to ensure they emerge even stronger and better positioned to grow share." (See DRI stock analysis on TipRanks)

For 3Q, Darden expects total sales to grow between 65% and 70% year-on-year. Meanwhile, analysts are projecting revenue of $1.93 billion, reflecting a year-over-year decline of 17.6%. EPS is forecasted to be in the range of $0.50-$.75, compared to the Street consensus of $1.28.

Following the earnings release, Stephens analyst James Rutherford raised the stock’s price target to $135 (16.2% upside potential) from $115 and maintained a Buy rating. Rutherford believes that the company is poised to gain market share in a post-vaccine environment and benefit from higher demand.

Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 17 Buys and 8 Holds. The average price target stands at $116.79 and implies upside potential of about 0.5% to current levels. Shares have gained 6.6% year-to-date.

Centene’s 2021 Profit Outlook Disappoints; Analyst Sticks To Buy

Nasdaq Stocks

5 years 10 months ago

Centene Corp., a provider of government-sponsored and commercial health care programs, on Friday released a lower-than-expected EPS outlook for 2021. Shares closed 1.5% lower on Friday.

Centene (CNC) anticipates 2021 adjusted earnings per share to be in a range of between $5 to $5.30, which is lower than the Street consensus of $5.43 per share. Revenue in 2021 is expected in the range of between $114.1 billion to $116.1 billion, compared to analysts’ projections of about $116 billion.

As for 2020, the company continues to project adjusted EPS in the range of $4.90 to $5.06, lagging the consensus estimates of $4.99 per share. Centene's 2020 revenue expectations of $109.8 billion to $111.4 billion compare to Street’s estimates of $111.3 billion. The company is scheduled to report its 2020 results on Feb. 9, 2021. (See CNC stock analysis on TipRanks)

Notably, Centene reported better-than-expected 3Q results in October, reflecting the benefits from the Affordable Care Act plan. The company’s adjusted earnings of $1.26 per share came ahead of analysts’ estimates of $0.96, while revenues of $29.1 billion beat the Street’s estimates of $28.3 billion.

In reaction to the 2021 guidance, Oppenheimer analyst Michael Wiederhorn maintained a Buy rating and a price target of $90 (47.2% upside potential) on the stock. In a note to investors, Wiederhorn said, “Centene remains on track and the company's stance related to its dominant Marketplace position will prove beneficial to shareholders.”

Wiederhorn further added, “The company expects to see more moderate growth in 2021 as it chooses margin over membership in the increasingly competitive Marketplace, particularly in Florida.” The 5-star analyst added, “While expecting short-term pressure on growth from the environment, management believes its long-term trajectory remains strong, looking for long-term revenue growth of mid-to-upper-single digits and EPS growth in the double-digits.”

The rest of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 10 Buys and 2 Holds. The average price target stands at $79.04 and implies upside potential of about 29.3% to current levels. Shares were down 2.7% year-to-date.

BioTelemetry Spikes 17% On $2.8B Philips Deal; Needham Cuts Rating To Hold

Nasdaq Stocks

5 years 10 months ago

Shares of BioTelemetry jumped 16.9% on Friday after the company agreed to be acquired by Dutch company Royal Philips in a cash deal worth $2.8 billion. The tech-based healthcare company expects the transaction to close in the first quarter of 2021.

BioTelemetry (BEAT) announced that Philips would buy all its issued and outstanding shares for $72 per share. The deal reflects a 16.5% premium to the stock’s closing price of $61.78 as of Dec. 17. Following the completion of the transaction, about 1,900 employees of BioTelemetry will become part of Philips.

“The acquisition of BioTelemetry fits perfectly with our strategy to be a leading provider of patient care management solutions for the hospital and the home,” said Philips CEO Frans van Houten. “BioTelemetry’s leadership in the large and fast growing ambulatory cardiac diagnostics and monitoring market complements our leading position in the hospital.” (See BEAT stock analysis on TipRanks)

Philips expects the transaction to be accretive to its sales growth and adjusted EBITA (earnings before interest, taxes and amortization). The company anticipates BioTelemetry's business to grow in the double-digit range, while adjusted EBITA margin is projected to improve to over 20% by 2025.

Following the announcement, Needham analyst Michael Matson downgraded BioTelemetry stock to Hold from Buy. In a note to investors, Matson wrote, “While BEAT shares are trading above the takeover price pre-market, higher strategic bids are unlikely, in our view.” The analyst further noted, “While we believe BEAT has a favorable 2021 set up with multiple opportunities to potentially drive upside to consensus numbers, we are downgrading BEAT to a Hold from a Buy given the pending acquisition.”

Overall, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy analyst consensus. Following this year’s stock rally of 56%, the average price target stands at $62.67 and now implies downside potential of about 13.2% to current levels.