[Analysts Raise Price Targets on Affymax (AFFY) Following FDA Approval of OMONTYS 1:24 pm ET 03/28/2012 - Street Insider A number of analyst firms have revised estimates and price targets on Affymax (Nasdaq: AFFY) following Tuesday's news of FDA approval for its anemia treatment OMONTYS and the resulting 4 percent move higher in the stock. Shares had ran up nearly 20 percent last week ahead of the expected FDA nod.
Rodman & Renshaw's Mike King raised his target on Affymax shares from $20 to $24 and maintained a Market Outperform rating. Stifel Nicolaus' Joel Sendek lifted his target from $19 to $22 and maintained a Buy rating. Finally, a Baird analyst raised his target from $15 to $17 this morning.]
[Baird Boosts Price Target on Affymax (AFFY) to $17 8:57 am ET 03/28/2012 - Street Insider Baird raised its price target on Outperform-rated Affymax, Inc. (NASDAQ: AFFY) from $15 to $17 following FDA approval of OMONTYS with a broad dialysis label.
"We think the stock s weakness in late trading yesterday was due to concerns over announced pricing, the analyst said. "However, in that WAC price is just a starting point, and OMONTYS' true market price will be determined by AFFY's individual contract negotiations, we think such concerns are wholly misplaced."
They recommend buying on any weakness.]
There is no god reason for this decline in AFFY price. An active trader is trying to drive down price. He has likely minored retail investors accounts with shorted shares at above these prices. Now he wants to cash in on his trade by pushing down stock price. This stock should trade to $15 or $17 easy. Institutional investors would have made the trade out when price was $16 and when 14 million shares changed hands.