Tuesday Morning’s Market Insights: Seadrill Ltd (SDRL), Ambarella Inc (AMBA), Keryx Biopharmaceuticals (KERX), TrovaGene Inc (TROV)


Seadrill Ltd (NYSE:SDRL) is down over 7% due to falling oil prices resulting from a series of upcoming events. First,  U.S. oil production data as well as a speech from Federal Reserve Chairwoman Janet Yellen are set for later today. The speech is expected to shed light on the future of monetary policy and provide more information on the interest rate increase. The U.S. job report is also expected later this week, which will provide information on the overall U.S. economic health. Next month, major oil producers are set to meet in Doja to discuss a production freeze. However, many believe Iran’s absence from the meeting is limits the chance of any deal being reached, as it has been ramping up oil production until it reaches its pre-sanction levels.  Another factor at play is the Easter holiday, which means less people are trading. As a result, it takes fewer trades to send prices up or down.

According to TipRanks’ statistics, out of the 4 analysts who have rated the company in the past 3 months, 2 gave a Sell rating and 2 remain on the sidelines. The average 12-month price target for the stock is $5.75, marking a 71% upside from where shares last closed.

Ambarella Inc (NASDAQ:AMBA) is up over 5% in pre-market trading after an upgrade by Morgan Stanley analyst Joseph Moore from Equal weight to Overweight with a $55 price target. Earlier this month, the company posted its Q4 earnings report which was marked by weak guidance for Q1 of $55- $57 million in sales, marking a 21% midpoint y/y decline and the first in 18 quarters. The company also posted weaker than expected EPS of 68 cents per share, the first in 18 quarters. However, last week Force Protection Video Equipment announced it has received multiple orders for its new LE10 HD body camera and accessories, which are powered by Ambarella chips.

Moore states, “New computer vision chips taping out this year (targeting automotive driver assistance, over time, but also several other applications) change the game , add strategic value, and expand the multiple. Computer vision moves the company from an enabler of key niche markets to a major player in markets deemed critical for the largest semiconductor companies. While true ADAS revenues are years away, progress should add significantly to the strategic value of Ambarella.”

According to TipRanks, out of the 11 analysts who have rated the company in the past 4 months, 6 gave a Buy rating and 5 remain neutral. The average 12-month price target for the stock is $58.38, marking a 43% upside from where shares last closed.

Keryx Biopharmaceuticals (NASDAQ:KERX) is up 29% in pre-market trading after releasing positive data. The company released positive top line results from its Phase 3 study of ferric citrate, designed to treat iron deficiency anemia in adults with non-dialysis dependent chronic kidney disease. The study met its primary endpoint, as 52% of patients taking ferric citrate showed an increase in hemoglobin while those taking the placebo showed only a 19% increase. The treatment was also well tolerated by most patients, with any negative events meeting its safety profile. The company plans to submit an sNDA in Q3:16 and it approved the it would be the treatment targeting these type of patients kind in tablet form. John Neylan, M.D., CMO of the company, stated, “Based on these results, we plan to submit an sNDA to the FDA in the third quarter, seeking to expand the label for ferric citrate to include the treatment of iron deficiency anemia in people with stage 3 – 5 NDD CKD.”

According to TipRanks’ statistics, out of the 5 analysts who have rated the company in the past 3 months, 4 are bullish while one remains neutral. The average 12-month price target for the stock is $7.75, marking a 70% upside from where shares last closed.

TrovaGene Inc (NASDAQ:TROV) is down over 40% in pre-market trading after the company’s board fired both the CEO Antonius Schuh and CFO Stephen Zaniboni, filing a complaint for breach of fiduciary duty. The company claims that the pair did not present a “lucrative corporate opportunity” to the company regarding promising new therapeutics, using the opportunity instead for personal benefit. The board asks that each hand in their interest in the new therapeutics to the company. The board appointed an interim CEO, Chairman of the board Dr. Thomas Adams.

According to TipRanks, out of the 4 analysts who have rated the company in the past 3 months, 3 gave a Buy rating while 1 remains neutral. The average 12-month price target for the stock is $12.33, marking a 141% upside from where shares last closed.