Piper Jaffray Upgrades Impax Laboratories (IPXL) to Overweight
March 11, 2015 6:51 AM EDT
Piper Jaffray upgraded Impax Laboratories (NASDAQ: IPXL) from Neutral to Overweight with a price target of $49.00 (from $37.00) following ...
Here's RBC's take on the TKMR / OnCore merger. They raised the price target to $35
Our view: We're raising our price target to $35 to account for the synergy of TKMR/OnCore and the higher likelihood of success that a Hep B drug will come out of the plethora of 8 candidates (see page 4 pipeline exhibit) now under one roof. The long-term possibilities and combinations of drugs are seemingly endless and we see impressive long-term upside.
We believe TKMR stock will keep going higher and the merger of TKMR and OnCore Biopharma creates the best "pure-play" Hep B pipeline company in the industry. We have said Hep B is early and evolving and investors need to pay a lot more attention. We think these stocks will go up over the next 1-2 years as drugs advance into the clinic and show some proof of concept. Over a few years, some big developments could occur, particularly with TKMR, which combined with OnCore (deal should close in 2-3 months) has a full armamentarium of drugs to work with, combine, and find the best regimen to cure Hep B -- a $5-20B TAM market opportunity that is likely to develop over the next handful of years.
We are raising our price target to reflect where we think the stock can go this year based on:
1) investors have not yet fully digested what's going on here given it's a busy week at a major industry conference;
2) OnCore was private and under the radar for most institutional investors;
3) the leadership team is extremely strong and experienced with many former members of Pharmasset, which sold to GILD for $11B, now leading OnCore and will spearhead Hep B development;
4) combining the TKMR team, TKM-HBV, and RNAi platform adds another piece to the puzzle.
Our price target and pro-forma model reflects an assumption of doubling the share count for the combined entity.
Lake Street Capital Markets initiated coverage on EXACT Sciences Corporation EXAS with a Buy rating and $33 price target. Analyst Bruce D. Jackson noted that since “Cologuard has obtained a $492.72 per test reimbursement rate from Medicare, we think there is upside potential for test revenue during 2015 that can feed positive sentiment on the stock.”
“There may be questions about 2016 and beyond as to whether commercial insurance companies will cover the test (they will, in our opinion) and the sustainability of that price (it’s not, in our view), but ultimately we think this experienced management team can capture a significant share of a large potential market.”
The firm pegged “the future addressable market potential for Exact at $4 billion. This is based on a blended ASP of $220 per test and roughly 17 million tests a year (80 million eligible people, a 65 percent current compliance rate, 3-year screening interval).”
Jackson observed that “Exact has $299 million in cash that can be used for development projects and acquisitions to expand the product portfolio.”
The $33 price target was based on 5x the firm’s 2019 EV/Revenue estimate of $839 million discounted at 10 percent. Jackson suggested using “share price pullbacks to accumulate shares.”