Analysts are weighing in on biotech companies Pacific Biosciences of California (NASDAQ:PACB) and Osiris Therapeutics, Inc. (NASDAQ:OSIR), as shares of both companies fell sharply today following earnings results and CEO resignation, respectively.
Pacific Biosciences of California
Pacific Biosciences shares are tumbling nearly 20% after Piper Jaffray analyst William Quirk downgraded the name from an Overweight to a Neutral rating with a price target of $11.00, citing limited upside prospects.
On the flip side, Cantor analyst Bryan Brokmeier reiterated a Buy rating and price target of $18 on the stock, following the company’s fourth-quarter results.
Brokmeier wrote, “We recommend that investors BUY shares of PACB, especially following last night’s earnings results. 2016 revenue guidance was significantly higher than even our Street-high estimate. Interestingly, the company guided total revenue to be equal with 2015. It’s important to note that management has historically been conservative with guidance. Hence, guiding to product and service revenue growth that achieves at least flat total revenue growth is a really positive sign, but we don’t believe that management is overreaching.”
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, analysts William Quirk and Bryan Brokmeier have a yearly average return of -3.5% and 7.8% respectively. Quirk has a success rate of 43% and is ranked #2,706 out of 3,689 analysts, while Brokmeier has a success rate of 44% and is ranked #526.
Out of the 3 analysts polled by TipRanks, 2 rate Pacific Biosciences stock a Buy, while 1 rates the stock a Hold. With a return potential of 49%, the stock’s consensus target price stands at $14.50.
Osiris Therapeutics, Inc.
Brean Capital analyst Jason Wittes reiterated a Sell rating on shares of Osiris Therapeutics, with a price target of $4.00, after the company announced that President and CEO, Dr. Lode Debrabandere is resigning. Osiris shares reacted to the news, falling 12% in mid-day trading.
Wittes commented, “While Dr. Lode’s resignation was voluntary, as was the recent resignation of its auditor BDO, he leaves in his wake a series of questions regarding accounting and business policies, and we believe that the likelihood of major restatements (the company already admitted in an 8K that 2014-2Q15 are not to be relied upon) and write-downs (from elevated accounts receivable) are now more likely. We also anticipate that the 10K will be delayed, potentially several quarters, creating more uncertainty among investors. As such, we now expect the stock to trade at or below 1x EV/sales or $4, which is where most stocks trade under such uncertainty.”
According to TipRanks.com, analyst Jason Wittes has a yearly average return of -3.3% and a 36.5% success rate. Wittes has a 32.6% average return when recommending OSIR, and is ranked #2976 out of 3612 analysts.
Out of the 2 analysts polled by TipRanks, 1 rate Osiris stock a Sell, while 1 rates the stock a Buy. With a return potential of nearly 83%, the stock’s consensus target price stands at $11.25.