Tag Archives: bayry

Tesla Price Target Cut On Model 3; Monsanto Hiked; Best Buy Not A Buy

RBC Capital lowered its price target on Tesla ( TSLA ), Jefferies upped its price target on Monsanto ( MON ) on views that Germany’s Bayer will sweeten its $62 billion takeover offer, and  Best Buy ( BBY ) was downgraded by Citigroup and Deutsche Bank. Tesla RBC Capital trimmed its price target on Tesla to 242 from 252. The electric automaker last week announced a $2 billion stock offering that will be used to fund a production ramp-up for the Model 3. RBC Capital forecast a fresh $1 billion equity raise in 2017 and lowered its estimate for Model 3 shipments. “We were always below Tesla’s vehicle delivery targets of 500,000 by 2018 and 1 million by 2020, but after speaking with industry contacts and reconsidering our model, we are tempering our delivery forecast to account for a slower Model 3 ramp,” said the RBC Capital report. Tesla shares rose 0.9% to 219.90 in early afternoon action on the stock market today . Monsanto Jefferies upped its price target on Monsanto to 132. “We believe a higher-than-$130-per-share transaction is highly likely, with details emerging by August,” Jefferies said in the report. Monsanto on Tuesday rejected a $122-per-share cash offer from  Bayer ( BAYRY ), but signaled it might be open to a higher price. Late Tuesday, Bayer issued a statement sounding hopeful that a deal could be reached. “To date, activist pressure has been limited. If a deal falters, we would expect (a) step-up in pressure for Monsanto to do more with its balance sheet,” said Jefferies. Monsanto stock rallied 2.5% intraday. Bayer fell fractionally. Best Buy Best Buy, which on Tuesday forecast current-quarter profit below views and said its CFO was leaving, was downgraded to neutral by Citigroup and Deutsche Bank. Citigroup cited a lack of hot new consumer electronics products. Virtual reality will not take off until 2017, said Citigroup. “Categories with no secular threats — home improvement and auto parts — are performing better and are more predictable,” Citigroup said. Best Buy shares rebounded 3.6% after tumbling 7.4% on Tuesday. Fleetmatics Pacific Crest Securities upgraded Fleetmatics ( FLTX ) to overweight with a price target of 54. Shares in the mobile fleet management software provider are down 20% in 2016 after surging 43% last year. “With plenty of solid runway for growth, rising (customer turnover) now better understood, a positively received management transition and a conservative earnings outlook for the year, we turn more positive on FLTX,” said the Pacific Crest report. Fleetmatics stock rose 2.4% intraday. In other analyst moves, Needham upgraded Workday ( WDAY ) to buy and raised its price target to 85 from 80. Workday rose 1% to 77.69 intraday.

Tesla Price Target Cut; Monsanto’s Hiked; Best Buy Downgraded

RBC Capital lowered its price target on Tesla ( TSLA ), Jefferies upped its price target on Monsanto ( MON ) on views that Germany’s Bayer will sweeten its $62 billion takeover offer, and  Best Buy ( BBY ) was downgraded by Citigroup and Deutsche Bank. Tesla RBC Capital trimmed its price target on Tesla to 242 from 252. The electric automaker last week announced a $2 billion stock offering that will be used to fund a production ramp-up for the Model 3. RBC Capital forecast a fresh $1 billion equity raise in 2017 and lowered its estimate for Model 3 shipments. “We were always below Tesla’s vehicle delivery targets of 500,000 by 2018 and 1 million by 2020, but after speaking with industry contacts and reconsidering our model, we are tempering our delivery forecast to account for a slower Model 3 ramp,” said the RBC Capital report. Tesla shares were up 0.4% in premarket trading. Monsanto Jefferies upped its price target on Monsanto to 132. “We believe a higher-than-$130-per-share transaction is highly likely, with details emerging by August,” Jefferies said in the report. Monsanto on Tuesday rejected Bayer ’s ( BAYRY ) all-cash, $122-per-share offer. “To date, activist pressure has been limited. If a deal falters, we would expect (a) step-up in pressure for Monsanto to do more with its balance sheet,” said Jefferies. Shares rallied 2.3% early. Best Buy Best Buy, which on Tuesday forecast current-quarter profit below views and said its CFO was leaving, was downgraded to neutral by Citigroup and Deutsche Bank. Citigroup cited a lack of hot new consumer electronics products. Virtual reality will not take off until 2017, said Citigroup. “Categories with no secular threats — home improvement and auto parts — are performing better and are more predictable,” Citigroup said. Best Buy shares slumped 0.8%. Fleetmatics Pacific Crest Securities upgraded Fleetmatics ( FLTX ) to overweight with a price target of 54. Shares in the mobile fleet management software provider are down 20% in 2016 after surging 43% last year. “With plenty of solid runway for growth, rising (customer turnover) now better understood, a positively received management transition and a conservative earnings outlook for the year, we turn more positive on FLTX,” said the Pacific Crest report. In other analyst moves, Needham upgraded Workday ( WDAY ) to buy and raised its price target to 85 from 80.

How Regeneron’s Eylea Growth, Amgen, Sanofi Deal Figure In Stock

Biotech Regeneron Pharmaceuticals ’ ( REGN ) core ophthalmology business still has huge upside as its Eylea sales grow in treating a variety of eye diseases, says RBC Capital. RBC also says that a legal settlement with Amgen ( AMGN ) over Praluent, a drug intended to lower bad LDL cholesterol, would be a positive. Most of Regeneron’s sales come from Eylea, launched in 2011 to treat age-related vision loss in the elderly. Regeneron aims to build sales of Eylea in the market for treating diabetic macular edema (DME), a cause of blindness in working-age people, as well as a related eye disease affecting older people. “Turning DME into a $2 billion to $3 billion market opportunity is important and likely,” Adnan Butt, an RBC Capital analyst, said in a research report Tuesday. In DME, Eylea competes with Roche Holding ’s ( RHHBY ) Lucentis. Regeneron typically reports earnings in early May. Roche, Novartis ( NVS ) and Bayer ( BAYRY ) report earnings on April 19, 21 and 26, respectively, and their commentary could provide insights into Eylea’s growth, says RBC’s Butt. He says that consensus expectations for the recently launched cholesterol drug Praluent, which had only $7 million in December-quarter sales, still need to come down. Amgen makes a rival drug called Repatha. In March, a federal jury upheld the validity of two Amgen patents related to the cholesterol drug, dealing a blow to Regeneron and partner Sanofi ( SNY ). “A settlement with Amgen could be a positive,” Butt said in the report. He rates Regeneron stock outperform, with a price target of 668. Regeneron stock was up more than 1.5% in early afternoon trading in the stock market today , near 402.50. Amgen reports earnings on April 28, followed by Sanofi on April 29. Their earnings calls could provide reads on the status of Praluent litigation, says Butt. Regeneron stock has plunged 26% in 2016 amid a broad sell-off in biotech stocks, including Celgene ( CELG ) and Gilead Sciences ( GILD ). Regeneron shares touched a six-month low below 349 last month but jumped on April 1 after the company announced strong phase three clinical results for dupilumab, a drug for eczema, an itchy skin condition. Regeneron is developing that drug with Sanofi. “The landmark deal with Sanofi provides $160 million per year to fund antibody discovery for eight years, gives Regeneron 50% of the profit and defers all development costs until the partnership is profitable,” added Butts. Startup Intellia Therapeutics late Monday announced a licensing deal with Regeneron. Cambridge, Mass.-based Intellia has developed “gene editing” technology to treat liver and blood diseases. It plans to go public. Regeneron has an IBD composite rating of 58 out of a possible 99, lower than both Celgene and Gilead. IBD’s Medical-Biomed/Biotech group ranks just No. 108 out of 197 industry groups. That’s down from No. 39 six months ago.  But it’s up 9.8% the past four weeks, 10th best in that span. Anika Therapeutics ( ANIK ), Supernus Pharmaceuticals ( SUPN ) and Ligand Pharmaceuticals ( LGND ) have the highest IBD Composite Ratings within the biotech group.