Thursday’s Market Insights: Facebook Inc (FB), Keryx Biopharmaceuticals (KERX), Wal-Mart Stores, Inc. (WMT), RXi Pharmaceuticals Corp (RXII)

Facebook Inc (NASDAQ:FB) spiked 1.03% in pre-market trading up to $95.04 after Argus research upgraded the social media company from Hold to Buy with a $115 price target. The analyst is bullish on the company as it continues to monetize its advertising avenues and capitalize on its ability to advertise to a wide array of audiences. The analyst also sees potential in new markets such as virtual reality and messaging. The analyst estimates 2015 EPS of $2.04 and 2016 EPS of $2.39. According to the 38 analysts polled by TipRanks in the last 3 months, an overwhelming 36 are bullish on the company while 2 are on the sidelines. The average 12-month price target for Facebook is $113.37, marking a nearly 21% potential upside from current levels.

FB consensus

Keryx Biopharmaceuticals (NASDAQ:KERX) is up 6.95% in pre-market trading to $4.00 after the company announced it has entered into an agreement to raise $125 million through the private placement on Convertible Senior Notes with the Baupost Group. Convertible Senior Notes are a form of debt security that has priority over other securities. Keryx also announced a cost-cutting plan to decrease cash operating expenses from $92 million to $87 million in 2016. Based on the 8 analysts polled by TipRanks in the last 3 months, 3 are bullish on the biopharmaceutical company; 1 is bearish; and 4 are staying on the sidelines. The average 12-month price target for the company is $9.50, marking a 154% potential upside from current levels.

KERX consensus

Wal-Mart Stores, Inc. (NYSE:WMT) slumped 1.03% in pre-market trading down to $59.41 after the company cut estimates for its earnings at its annual investors conference yesterday. The company is expected to release earnings on November 17. Walmart’s CFO estimated growth of 3% to 4% over the next three years; a modest figure that adds $45 billion to $60 billion in revenue. In addition, the company announced a revised forecast for long-term earnings outlook due to the company’s investment in raising wages. Company management expects EPS to fall between 6% and 12% in 2017, though the figure will be positive and growing again by 2019. Most analysts have fallen to the sidelines since Wal-Mart’s February announcement that it will be raising employee wages. In light of the announcement, analyst Michael Exstein of Credit Suisse downgraded the company from Outperform the Neutral and lowered his price target from $85 to $62. The analyst believes that since the company reset expectations, “profitability and even asset redeployment will take a backseat to investment and a sales growth mandate.” According to the 8 analysts polled by TipRanks in the last 3 months, 1 analyst is bullish on the company; 2 are bearish; and 5 are staying on the sidelines.

Click here to see Michael Exstein’s past ratings history and performance.

Exstein photo

RXi Pharmaceuticals Corp (NASDAQ:RXII) soared 15.74% to $0.62 in pre-market trading after the company announced positive interim results for a Phase 2a trial of RXI-109. The pipeline drug, RXI-109, is meant to mitigate scarring after surgeries. The trial so far has showed that sites of surgery treated with RXI-109 after scar revision surgery scored higher than control incision cites. Two different doses of the drug were equally well-tolerated. Dr. Cauwenbergh, CEO, will present the results this afternoon. According to TipRanks, only Mark Breidenbach has weighed in on the company in the last three months with a bullish rating and a $3.50 price target. Breidenbach was optimistic about RXI-109 and called the company an “underappreciated innovator with upside for the long-term investor.”

Click here to see Mark Breidenbach’s past ratings history and performance.

RXI consensus

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