4/2/2015 Needham & Company LLC Lower Price Target Strong-Buy $60.00 - $50.00
4/2/2015 Topeka Capital Markets Lower Price Target Hold $33.00 - $30.00
Analysts at several different firms weighed in on Dyax Corp. (NASDAQ: DYAX) Wednesday following the company's announcement of data from a study on DX-2930 that handily beat market expectations.
The orphan drug, which was developed to treat a rare condition called hereditary angioedema (HAE), showed efficacy rates that vastly exceeded the numbers of major competitors in the space.
Shares of Dyax stock spiked as much #$%$ percent on Wednesday morning. Here's what some analysts had to say.
Bank Of America
Analysts praised the efficacy and safety results for DX-2930 and project a 2018 launch and a $530 million U.S. market for the drug by 2029. Bank of America raised its approval likelihood projections for the drug from 40 percent to 65 percent and raised penetration forecasts from 45 percent to 60 percent for the U.S. and from 45 percent to 50 percent for Europe.
Bank of America has a Buy rating on Dyax and raised its target for the stock from $16 to $30 following the results.
Leerink analysts were also impressed by the results and adjusted projections for DX-2930 accordingly. Analysts are now forecasting a $1.3 billion gross market opportunity for the drug, up from a previous projection of only $700 million.
Leerink reiterated its Market Perform rating on Dyax, but raised its target for the stock from $16 to $25.
Analysts note that a potential takeout price for the company could be greater than $30 per share.
Oppenheimer analysts see the latest data on DX-2930 as a step toward the drug becoming the best-in-class prophylactic HAE treatment. Oppenheimer has an Outperform rating on Dyax and raised its target for the stock from $14 to $26.
Dyax Corp. (DYAX) PT Lifted to $31 at Jefferies
April 1, 2015 6:54 AM EDT
Jefferies analyst Biren Amin reiterated a Buy rating and boosted his price target on Dyax Corp. (NASDAQ: DYAX) to $31.00 ...
Needham & Company analyst Serge Belanger reiterated a Buy rating and boosted his price target on Dyax Corp. (NASDAQ: DYAX) to $30.00 (from $19.00) following positive ph 1b results of DX-2930.
Belanger commented, "Strong positive results from a ph 1b study evaluating DX-2930 in HAE patients exceeded previously high expectations. DX-2930 was well tolerated at all doses and continued displaying a PK profile supporting twice- or even once-monthly dosing. The highlight was the efficacy results showing that DX-2930 led to a 91% reduction in HAE attack rate. These data provide important clinical proof-of-concept results in HAE patients with efficacy that appears to go well beyond the ~50% attack reduction with the current standard-of-care for HAE prophylaxis. Dyax will meet with FDA to delineate future clinical development plans required for U.S. approval. Given strong ph 1b results, there is the possibility that only a single pivotal study could be required for approval."
You idiot, it's down because of earnings estimates are going to be slash by 20% or more.
$3.75-- 90 days ago to $2.70 today. 2016 will drop from $4.19 to about $3.00 Shorts will tank this hard tomorrow. Look for $24 tomorrow, $22 by next week.
Though it beat FQ2 estimates, Micron (NASDAQ:MU) has guided in its earnings slides (.pdf) for FQ3 revenue of $3.8B-$4.05B, below a $4.29B consensus. At the same time, a light outlook was expected by many.
Lifting FQ2 sales: Trade NAND sales rose 12% Q/Q, in spite of guidance for production to be flat to down by a low-single digit %. DRAM sales fell 9%; production guidance was for a high-single to low-double digit drop.
DRAM and trade NAND ASPs respectively fell 6% and 9% Q/Q, below guidance of flat to down low-single digits. However, DRAM cost/bit fell 4% (better than guidance for a flat cost/bit), and trade NAND cost/bit fell 3% (better than guidance for a mid-single digit increase).
FQ3 DRAM guidance: High-single digit production growth (20nm transition), high-single digit ASP decline (PC price pressure), low single-digit cost/bit decline. FQ3 trade NAND guidance: Low-single digit production decline, mid-single digit ASP growth, mid-single digit cost/bit growth.
FQ2 gross margin was 34%, down from FQ1's 36% and flat Y/Y. SG&A spend rose 6% Y/Y to $187M; R&D spend rose 10% to $379M. DRAM was 65% of revenue, NAND 32% (trade NAND 29%), and other products (e.g. NOR flash) 3%.
Free cash flow was (op. cash flow - capex) was $399M. The FY15 capex budget remains at $3.6B-$4B. Micron ended FQ2 with $6.35B in cash/marketable investments, and $6.7B in debt.
American Airlines Group (NASDAQ:AAL) is also cut to Hold and has its PT sliced to $58 from $78.
That's a huge cut in pt. Looks like it's time to short this dog.
Deutsche Bank downgraded American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NYSE: UAL) from Buy to Hold with a price target of $58 (from $78), $50 (from $60) and $70 (from $85), respectively.
Analyst Michael Lindenberg commented, "We are lowering our ratings on the shares of AAL, DAL, and UAL (i.e. the Big Three) from Buy to Hold as we think that int'l sales will be a source of earnings disappointment for the next few quarters. The combination of a strong US dollar, greater-than-expected capacity increases by non-US airlines, and decelerating global GDP growth are likely to further pressure our -5% int'l PRASM forecast for 2015. However, we do believe that airlines will be quick to utilize their sizable share repurchase authorizations in response to any stock price weakness. The net effect, in our view, is that AAL, DAL, and UAL shares will be range-bound in the near-term, hence, our Hold rating."