Deutsche Bank downgraded Onyx Pharmaceuticals (NASDAQ: ONXX) from Buy to Hold with a price target of $140.00 (from $110.00). Analyst Robyn Karnauskas thinks M&A is 'baked' into shares and doesn't see enough upside in based on a potential deal.
"Onyx confirmed on 7/16 that it is actively accepting bids from potential acquirers. Acquisition seems likely at this point and we are taking our TP up to reflect this view and potential full value to an acquirer at this time. We are assuming an M&A premium of 12% and have taken the assessed probability of success in EU up to 100%. Our new TP is $140/sh, which implies 11% upside from current levels," said Karnauskas.