Analysts Dive in on Two Falling Stocks: Imperva Inc (IMPV) and XOMA Corp (XOMA)

Analysts from BTIG and Webush are sharing insights on two falling stocks: Imperva Inc (NYSE:IMPV), whose shares are crashing close to 15% today, and XOMA Corp (NASDAQ:XOMA), whose shares are toppling 14%. Why are these stocks encountering such a colossal dip? Let’s explore:

Imperva Inc

This morning, Bloomberg reported that Imperva Inc is putting its merger and acquisition (M&A) process on hold, instead opting to devote its attention to developing the core business first and later looking for a better price. In reaction, shares were sent plunging.

For BTIG analyst Joel Fishbein, the spotlight will be on third-quarter earnings, set to be delivered November 3rd.

Fishbein explains, “We initially downgraded the stock on October 3rd on concerns that either a) any premium was likely minimal with the stock trading in the low-$50s; and b) there was risk of a deal failing to materialize given the reported limited interest from potential strategic acquirers. With the press report this morning, it looks like the deal noise should abate, and the stock should come down to trade in line with the peer group.”

“Management recently admitted that turnover is an issue, and quarterly checks have been mixed. This sets up a challenging path forward for the company as a standalone entity as the company needs to realign its go-to market strategy around more cautious customer buying behavior and smaller deal sizes (which the company cited for its large miss when preannouncing 2Q results),” Fishbein concludes.

Considering the company’s uphill hurdles ahead, the analyst reiterates a Neutral rating on shares of IMPV without listing a price target.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Joel Fishbein is ranked #253 out of 4,180 analysts. Fishbein has a 73% success rate and garners 16.1% in his annual returns. When recommending IMPV, Fishbein gains 14.8% in average profits on the stock.

TipRanks analytics exhibit IMPV as a Buy. Based on 12 analysts polled in the last 3 months, 4 rate a Buy on IMPV, 7 maintain a Hold, while 1 issues a Sell. The 12-month price target stands at $50.43, marking a 27% upside from where the shares last closed.


The UK’s Medicines and Healthcare Products Regulatory Agency (MHRA) just accepted in principle XOMA’s proposed multi-dose Phase 2 pediatric trial for those two years old and above for XOMA 358 treatment of Congenital Hyperinsulism (CHI). Next up will follow the MHRA formal review and acceptance of the clinical protocol. The firm recently started to enroll CHI patients over the age of 12 years old in Germany.

Additionally, Wedbush analyst Liana Moussatos commends XOMA Corp’s 1 for 20 reverse stock split that became effective the evening of October 17th, believing this is a pivotal initial step for the biotech firm to gain back “investor favor.” Therefore, Moussatos remains bullish on the stock, despite investor sentiment causing XOMA shares to substantially decline today.

As such, the analyst reiterates an Outperform rating on XOMA while significantly boosting the price target from $1.42 to $17, which represents a nearly 224% increase from where the shares last closed.

Moussatos asserts, “We look to data releases and program updates over the coming months to potentially lift shares.”

“We anticipate initiation of a multi-dose study and additional data releases for XOMA 358 in CHI and PBS in 2017,” the analyst adds, noting XOMA’s September release of positive interim Phase 2 PoC results for XOMA 358 in CHI and post-bariatric hyperinsulism (PBS).

“While the trials were small, we believe the results (coupled with the data in 22 healthy volunteers) suggest XOMA 358 could be effective through its ability to normalize insulin signaling and glucose levels. We anticipate the company is likely to release updated data from the trials in H1:17 and initiate a multi-dose study for XOMA 358 in CHI (ages 2 and up) and PBS in 2017. We believe continued positive data are likely to be a catalyst for shares,” the analyst contends.

Furthermore, Moussatos notes she has increased her share count for “anticipated financing.”

According to TipRanks, which measures analysts’ and bloggers’ success rate base on how their calls perform, five-star analyst Liana Moussatos is ranked #224 out of 4,180 analysts. Moussatos has a 41% success rate and realizes 12.1% in her yearly returns. When recommending XOMA, Moussatos faces a loss of 54.1% in average profits on the stock.

TipRanks analytics demonstrate XOMA as a Buy. Based on 3 analysts polled in the last 3 months, 1 rates a Buy on XOMA, while 2 maintain a Hold. The consensus price target stands at $1.42, marking a 73% downside from where the stock is currently trading.screen-shot-10-19-16-at-10-24-pm

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