Wednesday Morning’s Market Insights: Yahoo! Inc. (YHOO), QUALCOMM, Inc. (QCOM), XOMA Corp (XOMA), On Deck Capital Inc (ONDK)


Yahoo! Inc. (NASDAQ:YHOO) is up almost 4% in pre-market trading this morning after the WSJ reported that Yahoo’s board would discuss whether or not to sell Aabaco Holdings, the company that holds YHOO’s stake in Alibaba. Also in the discussion is the sale of the company’s core business, search and display advertising properties. Analyst John Blackledge of Cowen and Co. commented on the discussion, stating that this move could go either way for Yahoo depending on the buyers’ level of interest. He states, “In terms of buyers for the Core business, the WSJ speculated private equity buyers will explore potential bids, which makes sense as the fundamentals are soft, but the business still generates solid free cash flow. As for strategic buyers, unclear at the moment who could emerge as a leading candidate and also the level of interest in YHOO’s entire Core business or if various strategic bidders could be interested in distinct assets vs. the entire Core business.”

According to TipRanks’ statistics, out of the 26 analysts who have rated YHOO in the last 3 months, 16 gave a Buy rating while 10 remain on the sidelines. The average 12-month price target for the stock is $41.35, marking a 23% upside from where shares last closed.

YHOO Consensus

QUALCOMM, Inc. (NASDAQ:QCOM) is up 5% in pre-market trading this morning after the company announced it has entered a licensing agreement with Xiamo, a Chinese Internet and smartphone company. In the agreement, Qualcomm will give Xiami a royalty-bearing patent license to develop, manufacture, and sell 3G and 4G devices using Qualcomm technology. CEO of Xiamo Lei Jun stated, “Xiaomi prides itself on embracing and leading smartphone innovation through its popular line of Mi devices. A license from Qualcomm will play an important role in helping us bring the newest and most innovative products to our growing customer base.” Qualcomm President Derek Aberle commented, “Qualcomm is committed to the success of its partners in China as they continue to grow their businesses and we are pleased to reach this new agreement with Xiaomi. We work closely with our partners, such as Xiaomi, to push the boundaries of what’s possible and drive the advancement of the mobile industry.”

According to TipRanks’ statistics, out of the 12 analysts who have rated QCOM in the last 3 months, 7 gave a Buy rating while 5 remain on the sidelines. The average 12 month price target for the stock is $64.88, marking a 32% upside from where shares last closed.

QCOM Consensus

XOMA Corp (NASDAQ:XOMA) is up 4% in pre-market trading following an upgrade from Wedbush analyst Liana Moussatos. This upgrade comes after yesterday’s news regarding a licensing agreement between the company and Novo Dordisk for XMetA, antibodies for diabetes. The analyst reiterated her Outperform rating and $60 price target, stating “We consider this event to be positive as it provides nondilutive financing for the company while allowing the XMetA program to be developed by one the industry leaders in diabetes, Novo Nordisk (NVO; Not covered). According to the agreement, Novo Nordisk acquires global rights to XMetA for the treatment of diabetes, while Xoma keeps commercialization rights for XMetA for rare diseases and receives $5MM in upfront cash and is eligible to receive up to $290MM in additional potential development, regulatory and commercial milestones and tiered royalties.”

According to TipRanks’ statistics, Liana Moussatos is ranked #40 out of 3,685 analysts. Out of the 3 analysts who have rated XOMA in the last 3 months, 1 gave a Buy rating while 2 remain on the sidelines. The average 12 month price target for the stock is $1.80, marking a 24% increase from where shares last closed.

XOMA Consensus

On Deck Capital Inc (NYSE:ONDK) soared close to 38% this morning in pre-market trading after the company announced yesterday it would work with JPMorgan Chase Bank to offer small business loans. As larger banks usually have a difficult time issuing smaller loans, this partnership will use JPMorgan Chase’s lending power and OnDeck’s expertise in issuing loans to small businesses.  Although OnDeck is known for higher than average rates, their technology allows potential borrowers to get a yes or no answer relatively quickly which has proved an advantage for the company. Prior to the announcement, JPMorgan Chase CEO Jamie Dinnon stated, “We’re going to be doing a thing with one of these peer-to-peer, small-business lenders.” He continued, “The kind of stuff we don’t want to do or can’t do, but there’s somebody else who can do it and do it probably well. So this is going to be collaborative.”

According to TipRanks’ statistics, out of the 5 analysts who have rated ONDK in the last 3 months, 4 gave a Buy rating while 1 gave a Sell rating. The average 12-month price target for thes tock is $14.40, marking a 60% upside from where shares last closed.

ONDK