4 Hot Analyst Reads For Thursday, July 19th

Bret Jensen

The simplest acts of kindness are by far more powerful then a thousand heads bowing in prayer.” ― Mahatma Gandhi

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Here are four small cap stocks seeing notable analyst commentary just before we open for trading this Thursday

Credit Suisse initiatesAnaptysBio Inc (ANAB) with a new Outperform rating and $104 price target this morning. Last week, Jefferies was even more bullish as they reissued their own Buy rating and $145 price target with the commentary (paraphrased) about upcoming trial results

"We preview this quarter's readout of AnaptysBio's Phase IIa study testing ANB020 in severe asthma. The analyst's analysis suggests most biologics deliver 6%-9% improvement in lung function. A 7%-8% improvement likely drives $15-$20 of share upside while 9%-10% likely pushes the stock up $25-$30. The lower range of a 5%-6% improvement could trigger a selloff of $10-$15 per share and a true miss of less than 5% improvement could see the stock down $20-$25."

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A top ranked analyst at Mizuho Securities (MRNS) can double if upcoming trial results are solid. She reissues her Buy rating and $13 price target on MRNS this morning with the following color.

"Q3 top-line data from part 1 of the Phase 2 Magnolia study of ganaxolone IV in women with postpartum depression will be an "important catalyst" for the shares. We see upside potential of 100%-plus, assuming "convincing data including a clear dose response."

She also believes the downside is limited given the history of the compound and potential in other indications.

Canaccord Genuity raises its price target on Mallinckrodt (MNK) before the bell today to $22 from $14 previously. They maintain their Hold rating on the stock but have to admit **'**The company gave incrementally positive updates on its pipeline, which along with the potential sale of the generics franchise can move the story forward'.

Finally, RBC Capital is cutting oncology concern Spark Therapeutics (ONCE) to a Sector Perform this morning. They maintain their $75 price target. RBC's analyst notes the following for his less enthusiastic view on the company

"that after a strong run-up in the stock price driven by lofty expectations for the ongoing Phase 1/2 trial of SPK-8011 in patients with hemophilia, achieving mean FVIII expression levels of 30-55% anticipated by the Street could prove "challenging" as "data to date has not indicated clear dose responsiveness."

The analyst also cites the possibility of regulatory delays to gain approval for sale of Luxturna among the risks for Spark Therapeutics.

And those are four small cap concerns seeing recent analyst activity before the market opens this Thursday. Happy Hunting.

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Hot Analyst Reads