Analysts weighed in today on the coffee giant Keurig Green Mountain Inc (NASDAQ:GMCR) and biotechnology company Sangamo Biosciences, Inc. (NASDAQ:SGMO), as news of buyout deal that JAB Holdings has landed with Keurig Green Mountain, and Sangamo’s clinical update sent shares of both companies soaring.
Keurig Green Mountain Inc
Keurig Green shares jumped nearly 72% to $89 following the news that Keurig has agreed to be acquired by JAB Holding for $13.9 billion or $92/share, a 78% premium to Friday’s close.
In reaction, Canaccord analyst Scott Van Winkle raised the price target on GMCR from $55 to $92, while maintaining a Hold rating on the stock.
Winkle commented, “JAB’s pending acquisition of Keurig adds to an already significant, global coffee portfolio that includes leading coffee brands Jacobs Douwe Egberts (combination of D.E. Master Blenders and Mondelez’s French coffee business), Peet’s Coffee & Tea, Caribou Coffee, Espresso House and Baresso. The addition of Keurig to the JAB portfolio solidifies a North American presence and gives JAB control of the coffee system in over 20M American homes. While GMCR is in a bit of a transition, and felt the transition pains over the last year, Keurig’s US market share is clearly being valued.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Van Winkle has a total average return of 1% and a 43% success rate. Winkle has a 9.4% average return when recommending GMCR, and is ranked #1522 out of 3645 analysts.
Out of the 18 analysts polled by TipRanks, 2 rate Green Mountain stock a Buy, 15 rate the stock a Hold and 1 recommends a Sell. With a downside potential of 30%, the stock’s consensus target price stands at $62.58.
Sangamo Biosciences, Inc.
Sangamo Biosciences shares climbed 6.02% today, after the company reported positive pre-clinical data on its Hemophilia B program at the 57th Annual Meeting of the American Society of Hematology. In addition, the company announced the clinical protocol for its proprietary Hurler’s (MPS I) program – SB-318 – received unanimous approval from the NIH Recombinant DNA Advisory Committee (RAC) and the company is on track to file this IND before year-end.
Subsequently, Wedbush analyst Liana Moussatos reiterated an Outperform rating on the stock, with a price target of $30, which implies an upside of 209% from current levels.
Moussatos wrote, “With the recent acceptance of its IND application for its SB-FIX/Hemophilia B program, Sangamo presented non-human primate (NHP) data showing that ZFNs can be used to insert a corrective human factor IX gene into the albumin locus in liver cells. A single intravenous administration of SB-FIX, resulted in > 3% of normal factor IX production in NHP, an amount that may be able to ameliorate symptoms of the disease. Moreover, because of the relatively high expression from the albumin promoter, it may be possible to provide therapeutic levels of factor IX protein via expression from a relatively small percentage of cells. Importantly, it was shown that ZFN targeting was specific, with only a single off-target site (SMCHD1) observed when SB-FIX was given at levels much higher than potential clinical doses. In both NHP and mice, genome editing was well tolerated with no noticeable impact on circulating albumin levels. We anticipate Sangamo will begin clinical testing of SB-FIX for Hemophilia B in H1:16.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 22.8% and a 48.3% success rate. Moussatos has a -16.1% average return when recommending SGMO, and is ranked #39 out of 3645 analysts.