Thursday, July 8th, 2010
Notable Analyst Upgrades, Downgrades and Comments
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VIVUS, Inc. (NASDAQ:VVUS), Sun Bancorp, Inc. (NASDAQ:SNBC) and H&R Block, Inc. (NYSE:HRB) are three notable analyst upgrades, downgrades and comments made during today’s session.
VIVUS Obesity Medication Looks Attractive
VIVUS, Inc. (VVUS, Free Analysis), a developer of therapeutic products for underserved markets, was initiated at an Outperform with a $20 price target by Wedbush ahead of the opening bell today. The analyst believes that the firm’s Qnexa will help define a new class of obesity medications and views it as one of the most attractive product-driven plays in the mid-cap biotech space.
VIVUS’s experimental weight loss drug, which pairs a stimulant with an epilepsy drug, has shown in studies that it can help patients lose weight and keep it off for a year. Moreover, the drug has even helped some patients lower their blood pressure. Qnexa is up for approval by the FDA in October and has demonstrated impressive results in the eyes of many analysts.
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Sun Bancorp Upgraded after Wilbur Ross Invests
Sun Bancorp, Inc. (SNBC, Free Analysis), a regional bank holding company focused on the East Coast, was upgraded to a Buy with a $5 price target at Sterne Agee. The analyst noted the $100 million investment by guru Wilbur Ross as a catalyst for the stock moving forward. The investment was made at $4 per share and Ross will now own nearly 25% of the firm’s outstanding shares.
The additional capital will be used by the bank holding company to strengthen and expand current operations, as well as to pursue additional growth opportunities throughout New Jersey. After the investment, the firm’s risk-based capital ratio is projected to be at or above 14%, which is significantly above the general standards to be considered well-capitalized.
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H&R Block’s New CEO is a Positive Development
H&R Block, Inc. (HRB, Free Analysis), a provider of tax preparation services in the United States, was favorably mentioned by Oppenheimer following the departure of CEO Russ Smyth. The analyst believes that Alan Bennett, the new CEO in charge, is an experienced and respected insider, and recommended buying the shares on any weakness, rating them an Outperform.
Other analysts like Barrington downgraded the stock on news of the unexpected departure, predicting that it would bring volatility to the stock. Mr. Smyth resigned in order to accept a position of CEO at a large private company headquartered in his hometown of Chicago. Mr. Bennett has served in the past as the company’s interim CEO as well as on the board of directors.
Click Here: Get a Free HRB Stock Analysis!
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-- Written by Simon Monger
