8:50 am Cousins Prop upgraded to Buy from Hold at Stifel
Stifel upgrades CUZ to Buy from Hold and raises their tgt to $10.50 from $8.50 as 1) they expect value creation will ramp over the coming quarters with over $500mm of development delivering between 2Q17 and YE18, 2) including recent and pending dispositions, Cousins' 12.8mm SF portfolio (ex Orlando) is relatively small, but high quality, and located largely in the best urban Sunbelt submarkets, 3) low leverage, even for a development-oriented firm, at 3.9x net debt/EBITDA and 4) firm believes Cousins and Highwoods Properties (HIW, Buy, $51.52) together may reap the lion's share of build-to-suit opportunities in the major Sunbelt markets for the foreseeable future, continuously back-filling their development pipelines with relatively low risk, NAV accretive developments.
8:50 am Celldex Therapeutics coverage assumed with a Buy at H.C. Wainwright; tgt $10
H.C. Wainwright assumes coverage of CLDX with a Buy and sets target price at $10. Co is developing a broad antibody platform, and firm believes that Celldex should become a leading player in immunotherapy. While the shares have continued to languish following the Rintega Phase 3 miss in glioblastoma, and the lack of meaningful news flow since then, they are projecting an important turnaround during the next 12-months fueled by its two lead assets, glembatumumab vedotin (glemba) and varlilumab (varli).
8:50 am Regeneron Pharma downgraded to Underperform at Robert W. Baird on Dupixent launch; tgt $408
Robert W. Baird downgrades REGN to Underperform from Neutral and sets target price at $408. While Sanofi's reported Dupixent sales of $30M in 2Q17 are nothing to scoff at, firm believes investor expectations for this product have stretched the valuation beyond what is reasonable based on initial launch metrics. They also believe shares could give back a good portion of the move it had since April, when initial Rx data and management commentary sent expectations for this launch into the stratosphere.
8:50 am Boardwalk Pipeline downgraded to Sector Perform at RBC Capital Mkts; tgt lowered to $18
RBC Capital Mkts downgrades BWP to Sector Perform from Outperform and lowers their tgt to $18 from $22. BWP reported mixed 2Q17 results with Adjusted EBITDA slightly below expectations and DCF slightly above. While firm continues to expect a solid cash flow ramp from new projects coming online, they are lowering their outer year ests on a more conservative view of BWP's re-contracting efforts; Sector Perform.
8:50 am WildHorse Resource Development initiated with a Outperform at Imperial Capital; tgt $22
Imperial Capital initiates WRD with a Outperform and price target of $22. Co went public in December 2016, emerging from the downturn with concentrated holdings in the South Texas Eagle Ford Play and the North Louisiana Cotton Valley Tight Sand Play. In May 2017, WRD agreed to acquire 111,000 net acres and associated production from Anadarko Petroleum (APC) and private equity firm KKR for $625mn. This transaction will increase co's oil mix to 65% (3Q17E) from 49% (1Q17) and had made WRD the second largest leaseholder in the Eagle Ford trend. As a new, and perhaps not-so-well-known name, WRD trades at a discount to its Eagle Ford peers and is below Permian average multiples. Firm expects this to change as co continues to execute, deliver, and gain credibility.