Friday Morning’s Market Insights: Sunedison Inc (SUNE), KaloBios Pharmaceuticals Inc (KBIO), Clovis Oncology Inc (CLVS)
Sunedison Inc (NYSE:SUNE) shares are up nearly 5% to $3.41, rebounding from falls on Wednesday after UBS research analyst Julien Dumoulin Smith downgraded the stock from a Neutral to a Sell rating, while slashing the price target to $2.00 (from $3.00). However, Deutsche Bank analyst Vishal Shah actually believes that several overhangs have been resolved after the company made several announcements on Tuesday, including resolution of the ~$410M margin loan, selling ~425MW of projects to Terraform Global, and signed a 6.2MW 20 year PPA with L.A. County. The analyst noted, “We view these announcements as a positive for SUNE and TERP shareholders as it removes the margin loan overhang, which had caused technical pressure over the last several months. According to TipRanks, Out of 12 analysts who cover the stock, 8 suggest a Buy rating , 2 suggest a Sell and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $12.50, which implies an upside of 285% from current levels.
KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shares keep climbing after the the company’s new CEO Martin Shkreli told Bloomberg that KaloBios is in discussions to acquire up to three other drugs in deals that could be announced by the end of the year. Shkreli also posted in his Twitter account yesterday that he would stop lending out his company’s shares to short sellers. Shkreli acquired 80% of the company’s outstanding shares after the company announced it would wind down some of its operations due to a lack of cash. According to TipRanks’ statistics, Martin Shkreli has a 46% transaction rate (profitable transactions) and an average return of 73.2% per transaction.
Clovis Oncology Inc
Clovis Oncology Inc (NASDAQ:CLVS) shares rose 5.62% to $30.80 in pre-market Friday, after Hayman Capital, a Texas-based hedge fund, posted a presentation stating that Clovis was exaggeratedly punished for merely disappointing news on Rociletinib, its cancer drug. Furthermore, the hedge fund noted that Clovis’ fundamentals are likely to favor the $45 target price for 2016, and a bullish case of $90, and sees the recent stock pullback as an excellent buying opportunity. However, according to TipRanks, Hayman Capital didn’t perform well in the past year.