Monday Morning Market Insights: MannKind Corporation (MNKD), Seadrill Ltd (SDRL), Chipotle Mexican Grill, Inc. (CMG), ACADIA Pharmaceuticals Inc. (ACAD)


MannKind Corporation (NASDAQ:MNKD) fell 6.65% in pre-market trading down to $3.09 since Sanofi posted earnings on Friday. The two biotech companies partnered in a global licensing agreement to produce Afrezza; MannKind’s revolutionary inhalable insulin for adults with diabetes. The drug received a lot of positive coverage before it hit the market, but sales have been disappointing as Sanofi’s recent earnings report reflected that the drug has not gained traction, posting flat sales quarter over quarter. Sanofi has other products on the market so it is able to absorb the blow of a lackluster launch, but Afrezza is Mannkind’s only commercial product, thus posing a real threat to the company’s financials. MannKind is not yet a profitable company and analysts warn that it is burning cash very quickly. According to the 2 analysts polled by TipRanks in the last 3 months, 1 is bullish on the stock and 1 is bearish. The average 12-month price target for MannKind is $5.25, marking a 59% potential upside from where shares last closed.

MNKD consensus

Seadrill Ltd (NYSE:SDRL) fell 2.63% in pre-market trading down to $6.30 after oil prices fell due to weak economic data from China. The Chinese manufacturing managers index, which measures manufacturing activity, rose slightly from September to October, but remained unchanged for the month of October. The figures in the report reflect that manufacturing has been contracting for the past 8 months. This weak Chinese data coupled with recent news that Russia’s oil production is at a high, thus contributing to the glut, drove prices down on Monday morning to $48.84 a barrel for brent crude. According the 3 analysts polled by TipRanks in the last 3 months, 2 analysts are bearish on SeaDrill and 1 is neutral. The average 12-month price target on the stock is $9, marking a 39% potential upside from current levels.

RIG consensus

Chipotle Mexican Grill, Inc. (NYSE:CMG) slipped 4.72% in pre-market down to $610.01 after the fast-casual Mexican food chain closed 43 locations in Washington and Oregon due to an E. coli outbreak. Health officials say that 19 cases of E. coli have been connected to Chipotle, though it is still under investigation. Although the locations themselves did not report any issues, Chipotle closed all of the locations in the impacted region “out of an abundance of caution” as workers continue to identify the source of the outbreak. Analyst David Palmer of RBC Capital did not change his Outperform rating on the stock, but noted that he is “concerned” about the outbreak and wonders “how it will impact consumer perception of the brand given this is the third food outbreak in recent months for a company that especially prides itself on food quality and ingredients.” He notes that the 43 closed locations make up about 2% of Chipotle’s restaurants. According to the 13 analysts polled by TipRanks in the last 3 months, 8 are bullish on the company and 5 are neutral. The average 12-month price target for the stock is $746.77, marking a 17% average return per rating.

Palmer stat

Click here to see David Palmer’s past rating history and performance. 

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) increased 9% in pre-market trading up to $37.98 after the company announced this morning that the FDA granted Priority Review for NUPLAZID’s New Drug Application. The drug aims to treat psychosis associated with Parkinson’s disease and has already been assigned Breakthrough Therapy designation. The new Priority Review status shortens the FDA review timeline for the pipeline drug from 10 months to 6 months, so Acadia will hear back by May 1, 2016. There is currently no approved therapy for Parkinson’s disease psychosis. According to the 6 analysts polled by TipRanks in the last 3 months, 5 are bullish on the stock and 1 is neutral. The average 12-month price target is $61, marking a 75% potential upside from where shares last closed.

ACAD consensus