4 Hot Analyst Reads For Wednesday, August 1st

Bret Jensen

Because you don't learn anything unless you can find the patience to read. TV takes that away from you. It robs you from your mind.” ― Markus Zusak, Underdog

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Here are four small biotech stocks garnering new analyst commentary just before the bell in the first trading session of August.

Cantor Fitzgerald just initiatedArrowhead Research (ARWR) with a new Overweight rating, $13 price target and the following color.

“We rate Arrowhead Pharmaceuticals Overweight. ARWR utilizes its proprietary TriM to develop targeted drugs based on the RNA interference mechanism that silences disease-causing genes. The company is focused on its subcutaneously (SC) delivered drug candidates in clinical and preclinical development. Valuation Summary We value Arrowhead based on the sum of the risk-adjusted NPV yields an after-tax (21%), discounted value (15%) of ~$1.2 billion ($12/share) plus FY19 year-end cash of $78 million ($1/share), leading to our 12-month price target of $13.”

Kura Oncology (KURA) also gets assigned a new Buy rating and $31 price target at H.C. Wainwright before the bell today. Wainwright's analyst notes 'the shares currently do not reflect the overall opportunity for tipifarnib, which is about to enter a pivotal program in head and neck squamous cell carcinoma patients as well as several other indications, which could lead to a broad label for the drug'

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Sarepta Therapeutics (SRPT), whose stock has slid by a third recently, gets upgraded to an Overweight at Morgan Stanley today. Stanley's analyst also places a $163 price target on the stock. Morgan's analyst sees 'the pullback as an opportunity to own the stock near pre-DMD gene therapy levels without taking the binary risk and doesn't think a major bear case has emerged on the prospects for the company's DMD gene therapy program and sees major catalysts in the second half of this year that the market is missing'

Finally, Needham reissues their Buy rating and $67 price target on Nuvasive (NUVA) and provided the following commentary about the company's recent second quarter results.

NUVA’s 2Q18 revenue beat and EPS met consensus. Management reiterated its 2018 revenue guidance and lowered EPS guidance slightly. Organic revenue growth accelerated to 5% in 2Q18 from 2% in 1Q18 as both domestic businesses improved and offset moderately slower international growth. NUVA’s revenue guidance requires it to maintain high-single digit growth; we believe that it can do this given new products, easing comps, and stabilization of biologics. And its EPS guidance seems more realistic and we reiterate our Buy rating.”

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

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Hot Analyst Reads