Analysts are weighing in on regenerative-medicine company Osiris Therapeutics, Inc. (NASDAQ:OSIR) and internet-communications firm magicJack VocalTec Ltd (NASDAQ:CALL), as shares of both companies fell sharply today due to various setbacks. Let’s take a closer look.
Osiris Therapeutics, Inc.
Osiris shares are falling nearly 10% today after the company disclosed that it will be unable to file its annual report on time, nor within the 15 day extension period, putting the stock at risk for de-listing with NASDAQ.
Brean Capital analyst Jason Wittes was the first to comment, “While we had warned of the likelihood of such delays in filings (hence our Sell rating), we remain cautious on the company’s ability to remedy these issues and re-issue reliable financial statements. This will likely be a protracted process, creating at least several quarters of uncertainty. In such situations, stocks trade at 1x sales at best (implying $4), but this may prove optimistic given the uncertainty over the 2016 revenue outlook. We are projecting 13% revenue growth, which is now in doubt due to management changes (resignations of the CEO and COO and its related disruption), unreliability of numbers, and some revenues from residual Ovation sales ($7.6 million as of 3Q) that will not re-occur in 2016.”
Wittes reiterated a Sell rating on shares of Osiris Therapeutics, with a price target of $4, which represents a potential downside of 11% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Wittes has a total average return of 0.7% and a 44.8% success rate. Wittes has a 39.1% average return when recommending OSIR, and is ranked #1560 out of 3717 analysts.
Out of the 2 analysts polled by TipRanks, 1 rate Osiris Therapeutics stock a Sell, while 1 rates the stock a Buy. With a return potential of 176.4%, the stock’s consensus target price stands at $11.25.
magicJack VocalTec Ltd
magicJack shares are down nearly 15% Wednesday, following a fourth-quarter earnings report where net revenues fell 4.2% to $24.6 million. Furthermore, the company announced the acquisition of BroadSmart, a UCaaS provider for larger businesses and the launch of a UCaaS service for small businesses.
In reaction, Oppenheimer analyst Timothy Horan reiterated a Perform rating on the stock. The analyst commented, “The core business is very weak, but guidance is prudent and includes no contribution from app monetization or the hotel, Movistar, or small business VoIP initiatives. The acquisition is a step in the right direction, but from the outside looks expensive. Positively, the company should continue to produce $16M or so in FCF despite incremental investments.” All in all, “We welcome the change in strategy to business, but consumer is very weak with a 90K sub decline again and weak execution driving weak guidance of $86M ($102.5M with the acquisition) vs. our previous estimate of $99.7M.”
According to TipRanks.com, analyst Timothy Horan has a total average return of 4.4% and a 66% success rate. Horan has a -4.8% average return when recommending CALL, and is ranked #130 out of 3717 analysts.
As of this writing, all the 2 analysts polled by TipRanks rate magicJack stock a Hold. With a return potential of 62%, the stock’s consensus target price stands at $12.