In a research report released Friday, Needham’s healthcare analyst Alan Carr reiterated a Hold rating on shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), ahead of the company’s upcoming third-quarter results. Arena shares closed today at $1.89, up $0.07 or 3.85%.
Carr noted, “Arena announced earlier this month the resignation of Jack Lief as CEO. Harry Hixson, a member of the Board, has been appointed interim CEO until a permanent replacement is found. A strategic review is underway and the company announced earlier this week a number of changes, including a workforce reduction and a shift in focus from Belviq life cycle mgmt to the pipeline of earlier stage drugs.”
Furthermore, “We expect Arena to announce 3Q15 financial results in Nov, possibly week of Nov 9. Based on prescription service data, we are lowering our 3Q15 U.S. Belviq sales estimate to $11.5M (was $13.0). We assume Belviq revenues to Arena will be $4.7M (was $5.3M). We have also reduced our long-term Belviq U.S. estimates. We maintain HOLD, awaiting additional data from pipeline programs.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a total average return of 25.8% and a 58.7% success rate. Carr has a average return when recommending ARNA, and is ranked #25 out of 3808 analysts.
The 2 analysts polled by TipRanks rate Arena Pharmaceuticals stock a Hold. With a return potential of 376%, the stock’s consensus target price stands at $9.00.