Analysts are weighing in on the Valencia biomedical company MannKind Corporation (NASDAQ:MNKD) and biopharmaceutical company Intercept Pharmaceuticals Inc (NASDAQ:ICPT), as both stocks are suffering losses on Wednesday.
In a research report issued today, Piper Jaffray analyst Joshua Schimmer reiterated an Underperform rating on shares of MannKind, with a price target of $1.50, on the heels of Israeli news reports that Israeli regulators are preventing MNKD’s 50M share private placement to index funds from taking place. MannKind shares reacted to the news, dropping as much as 23% in early morning trading.
Schimmer observed, “On the 3Q earnings conference call, the company had previously highlighted the recent dual listing on the Tel Aviv Stock Exchange and the requirement of index funds to purchase MNKD shares. By offering shares directly from the company, MNKD noted the possibility of leveraging the mandated buying as a creative financing strategy. If indeed MNKD is not able to execute the private placement, MNKD will be under increasing pressure to pursue new strategies to address its deteriorating financial position. Given the challenges facing Afrezza and the increasing net-debt position, we see little reason to own shares and reiterate our Underweight rating.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer has a total average return of -2.1% and a 43.3% success rate. Schimmer has a 7.7% average return when recommending MNKD, and is ranked #3371 out of 3840 analysts.
Out of the 8 analysts polled by TipRanks, 2 rate MannKind Corporation stock a Buy, 2 rate the stock a Hold and 4 recommend a Sell. With a return potential of 173%, the stock’s consensus target price stands at $5.68.
Intercept Pharmaceuticals Inc
Wedbush’s healthcare analyst Liana Moussatos came out with a research note on Intercept Pharma, reiterating an Outperform rating, with a fair value estimate of $493, following the company’s third-quarter update. Intercept shares are currently trading at $181.55, down $24.42 or 11.86%.
Moussatos noted, “Intercept reported $0.445MM in Q3 in line with consensus of $0.416MM. Q3 GAAP EPS (loss) of $(1.87) was better than consensus of $(2.69). The company guided toward 201 5 Op Ex below previous guidance of $240MM due to the timing of hires in preparation for the launch of OCA in PBC and R&D activities. The company ended Q3 with about $695MM in cash & cash eq., which we project to likely cover multiple catalysts.”
Furthermore, “Intercept announced that it has hired 45 key territory business managers in the U.S. and 10 key regional managers Ex-U.S. that are already in the field talking with doctors. We anticipate the company is likely provide additional details on the potential launch of OCA in PBC as well as its preparations for a potential advisory committee meeting at its Analyst & Investor Day (Dec 1 st, NYC).”
According to TipRanks.com, analyst Liana Moussatos has a total average return of 21.7% and a 46.1% success rate. Moussatos has a 46.5% average return when recommending ICPT, and is ranked #56 out of 3840 analysts.
Out of the 7 analysts polled by TipRanks, 4 rate Intercept Pharmaceuticals stock a Buy, one rates the stock a Hold and 2 recommend a Sell. With a return potential of 72.74%, the stock’s consensus target price stands at $315.71.