Thursday’s Market Insights: Seadrill Ltd (SDRL), Celgene Corporation (CELG), SanDisk Corporation (SNDK), Sarepta Therapeutics Inc (SRPT)


Seadrill Ltd (NYSE:SDRL) shares were up 3.56% in pre-market trading to $6.11 after data correlated with the Chinese economy was better than analysts anticipated. China’s purchasing managers index measures manufacturing levels in China. The figure for September just came in at 49.8, marking an improvement from August’s 49.7. The price of oil, along with metals, increased to above $46 a barrel upon the release of this news since China is the world’s second largest consumer of oil in the world. Oil prices have been falling for over a year at this point due to oversupply, partially thanks to OPEC’s reluctance to stagnate production. According to the 3 analysts polled by TipRanks in the last 3 months, 2 analysts are bearish on SeaDrill while one is staying on the sidelines. The average 12-month price target is $9, marking a 52% potential upside from current levels.

Celgene Corporation (NASDAQ:CELG) increased 2.38% in pre-market trading after J.P. Morgan analyst Cory Kasimov upgraded his rating on the stock from Neutral to Overweight with a $152 price target, marking a 40% potential upside from current levels. Kasimov highlights the stock’s attractive valuation, noting it is “simply too compelling to remain on the sidelines.” He continues, “[Celgene is] one of the most fundamentally sound biotechs that has done a nice job of addressing next decade revenue gaps through [business development].” Even though the company does not have any catalysts in the near-term, the analyst believes the company is still poised for growth. Based on the 12 analysts polled by TipRanks in the last 3 months, 10 are bullish on Celgene while 2 recommend holding. The average 12-month price target between these 12 analysts is $160.18, marking a 48% potential upside from current levels.

Click here to see Cory Kasimov’s past ratings and performance history.

SanDisk Corporation (NASDAQ:SNDK) increased more than 3% in pre-market trading up to $56 after Joseph Moore of Morgan Stanley upgraded the stock from Equalweight to Overweight with a $75 price target, marking a 40% potential upside from current levels. The stock has fallen over 40% in the last 12 months, and Moore believes this pullback combined with multiple mergers in the sector limit the risk of downside. The semiconductor sector has been struggling since the fall of the PC which resulted in an oversupply of DRAM and NAND chips. Moore remains wary of this oversupply, but adds, “short term weakness is somewhat discounted and the stock is trading below its intrinsic value.” Based on the 21 analysts who have rated SanDisk on TipRanks in the last 3 months, 10 are bullish on the semiconductor company while 2 are bearish and 9 recommend waiting on the sidelines. The average 12-month price target between these 21 analysts is $61.70, marking a 13% potential downside from current levels.

Click here to see Joseph Moore’s past ratings and performance history.

Sarepta Therapeutics Inc (NASDAQ:SRPT) soared over 17% in pre-market trading to $37.72 after the biopharmaceutical company announced additional data from the Phase 2b trial of eteplirsen to treat the underlying cause of Duchenne Muscular Dystrophy. The additional data demonstrated a statistically significant advantage to patients undergoing a 6 minute walking test. Furthermore, fourth muscle biopsy results confirmed increased dystrophin for nearly all the test patients. Three days ago, Christopher Marai of Oppenheimer reiterated an Outperform rating on the stock and cited his belief that eteplirsen will receive accelerated approval by the FDA. According to the 8 analysts polled by TipRanks over the past 3 months, 7 of them are bullish on SRPT while one is staying on the sidelines. The average 12-month price target for the stock is $49.14, marking a 53% potential upside from where the stock last closed.

Click here to see Christopher Marai’s past ratings and performance history.