Tuesday, February 16th, 2010
Notable Analyst Upgrades, Downgrades and Comments
YES, I want free trades through Zecco.com!
Pharmacyclics, Inc. (NASDAQ:PCYC), McKesson Corporation (NYSE:MCK), and Eurand N.V. (NASDAQ:EURX) are three notable analyst upgrades, downgrades and comments made during today’s session.
Pharmacyclics’ Bullish Clinical Updates
Pharmacyclics, Inc. (PCYC, Free Analysis), a clinical-stage biopharmaceutical company, didn’t report the best fourth quarter results, but at least one analyst is very bullish on its recent clinical developments. Wedbush raised its price target from $5.50 to $8.00 per share to reflect the company’s recent clinical developments, while maintaining an Outperform rating on the stock.
The stock rose significantly higher on the news, while options traders were also more active. Implied volatility levels rose from 60.5% to 75.25% during today’s session amid speculation of positive developments. Meanwhile, the company also remains optimistic after reporting a narrowed net loss of just $218,000 for the second quarter.
McKesson Could Offset Declines, Analyst
McKesson Corporation (MCK, Free Analysis), a provider of information and care management products in the healthcare industry, may be facing downside pressure due to its lackluster guidance, but at least two analysts remain bullish. Deutsche Bank and J.P. Morgan both recommended the stock recently after its sell-off.
Deutsche Bank believes that shares are attractively valued at current levels amid concerns about its FY2011 guidance. The analyst believes that management can use stock buybacks and acquisitions to offset headwinds in 2011, creating significant upside potential in the stock. Meanwhile, the company also has a history of beating earnings expectations.
Deutsche Bank Likes Eurand at These Levels
Eurand N.V. (EURX, Free Analysis), a specialty pharmaceutical company, may have fallen sharply over the past month, but at least one analyst remains bullish. Deutsche Bank lowered its target price from $20 to $17 per share, but believes the launch of Zenpep is too early to call and finds the risk-to-reward profile on the shares to be attractive at these levels.
During today’s session, Eurand announced the grant of U.S. Patent No. 7,658,918 titled “STABLE DIGESTIVE ENZYME COMPOSITIONS” by the U.S. Patent and Trade Office. The patent will provide the company with coverage until at least February 20, 2028 on Zenpep, pancrelipase, Delayed-Response Capsules.
Want to become a better trader? Click here to sign-up for a FREE trading e-course taught by a former floor trader!
-- Written by David Breen
