Marinus Pharmaceuticals Inc
Monday turned out to be a nightmare for shareholders of Marinus Pharmaceuticals Inc (NASDAQ:MRNS), as the stock price tumbled 70% following the news that Marinus’ late-stage trial of a treatment for drug-resistant epilepsy failed to meet its goals and the company would discontinue the program and focus on other uses for the drug.
In reaction, Stifel Nicolaus analyst Thomas Shrader downgraded shares of Marinus from Buy to Hold.
Shrader noted, “Although the mechanism of action of ganaxolone in each of these indications makes sense, these programs are still in early stages of development and visibility into the company’s detailed development plans is modest. As a result we are changing our rating from Buy to Hold.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Thomas Shrader has a yearly average return of -14.8% and a 24% success rate. Shrader is ranked #3769 out of 3979 analysts.
Overall, 2 analysts polled by TipRanks rate Marinus stock a Buy, while 1 rates the stock a Hold. With a return potential of 855%, the stock’s consensus target price stands at $15.00.
Endo International plc – Ordinary Shares
Mizuho analyst Irina Rivkind Koffler upgraded shares of Endo International plc – Ordinary Shares (NASDAQ:ENDP) from Underperform to Neutral, while raising the price target to $16.00 (from $13.00), as she believes that the downside risk has lessened considerably.
Koffler wrote, “Endo is in a challenging situation with lower growth, and prolonged de-levering that makes the stock unattractive. The only upside from here is a potential takeout thesis which we explore further. Based on the company’s diverse group of assets we conclude that a strategic buyer is unlikely at this time. A financial buyer like a PE company could theoretically step in to acquire the business and sell off its pieces, but we think the business is too levered and it may be simpler to selectively divest for now. Therefore we think the company is more likely to remain standalone for the foreseeable future, though we would expect TPG (9.9% holder) to actively oversee its strategic direction and divestitures.”
“Our upgrade and increased $16 PT are based on lower SG&A and R&D expense (we anticipate tighter cost controls over a shrinking generics base) though we also modeled slightly lower revenue,” the analyst concluded.
According to TipRanks.com, analyst Irina Rivkind Koffler has a yearly average return of 26.9% and a 58% success rate. Koffler has a -1.3% average return when recommending ENDP, and is ranked #11 out of 3979 analysts.
Out of the 13 analysts polled by TipRanks, 9 rate Endo stock a Hold, while 4 rate the stock a Buy. With a return potential of 90%, the stock’s consensus target price stands at $31.33.