Tuesday Morning’s Market Insights: PayPal Holdings Inc (PYPL), Nuance Communications Inc. (NUAN), Clovis Oncology Inc (CLVS), Ebix Inc (EBIX)

PayPal Holdings Inc (NASDAQ:PYPL) rose 1% this morning after the company reported research about Chinese online shoppers. The report indicated that 35% of online shoppers in China made cross-border purchases. Melissa O’mally, director of cross-border trade initiatives at PayPal stated “By identifying the purchasing habits of global consumers, our research allows businesses to harness new trade opportunities around the world.” She continues “With Western holidays approaching, now is the time to access new markets and sales opportunities.” According to TipRanks’ statistics, out of the 26 analysts who have rated PayPal in the last 3 months, 16 gave a Buy rating, 3 gave a sell rating, while 7 remain on the sidelines. The average 12-month price target for PYPL is $41.28, marking a 15% upside from current levels.

PYPL Consensus



Nuance Communications Inc. (NASDAQ:NUAN) rose 10% this morning after the company released Q4/2015 earnings yesterday after market close. The company posted non-GAAP revenues of $513.3 million and earnings of $0.41 per share, beating analysts’ estimates of $507.84 million and $0.35, respectively. The company, known for developing Apple’s Siri, also posted strong guidance going forward into Q1. CFO Dan Tempesta stated “Nuance delivered a strong finish to its fiscal year, reporting revenue, EPS, cash flow from operations, margins and net new bookings that all exceeded our expectations…We made substantial progress on our company-wide transformation project, and continued to prioritize resources and focus toward our most significant market opportunities. We expect to continue our improvements in financial performance and lead the company to improved growth in 2016 and beyond.”

After the release, analyst Scott Zeller of Needham weighed in, reiterating a Hold rating with no price target. He echoes the CFO’s positive sentiment, stating “Management’s initial outlook for FY16 is in line with consensus revenue and may be viewed as better than feared. Continued cost reductions through FY16 should help boost margins above FY15 levels, and FY16 EPS guidance is above consensus.” However, he cites that “While last night’s results and guidance were generally positive, we believe shares are fairly valued at current levels and may likely remain range-bound.”

According to TipRanks’ statistics, out of the 4 analysts who have rated Nuance in the last 3 months, 3 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for Nuance is $22.00, marking a 29% upside from where shares last closed.

Click here to see analyst Scott Zeller’s ratings

NUAN Consensus


Clovis Oncology Inc (NASDAQ:CLVS) fell 5% in early trading today after yesterday’s news that the FDA needs more data on its lung cancer treatment rociletinib, delaying the drug’s release. After lawsuits from various firms regarding the validity of the company’s findings, the FDA issued a request. Specifically, the FDA needs more information from the company about the “effectiveness of two doses of the drug.” The company is set to present the data on Monday and plans on cooperating with regulators. The FDA was set to approve the drug by March 30, but this request could delay the decision to a later date. Following this news, shares plummeted to $30.24, close to its 52-week low of $26.05. According to TipRanks’ statistics, out of the 5 analysts who have rated CLVS in the last 3 months, 2 gave a Buy rating while 3 remain on the sidelines. The average 12-month price target is $51.50, marking an 86% upside from where shares last closed.

CLVS Consensus


Ebix Inc (NASDAQ:EBIX) were trading up 8% this morning following the announcement of a partnership with Willis, an insurance brokerage and human capital firm, to launch a new electronic accounting platform which will make it easier for the company to settle claims on behalf of clients. Vice President of Ebix Europe, Jeff Ward, stated “Willis and Ebix are leading the global market in electronic accounting and settlement. This will rapidly accelerate the worldwide adoption of ACORD Ruschlikon at a speed and cost that peer-to-peer messaging can simply never achieve. The twin goals of faster settlement and the eradication of unallocated cash are now significantly closer. We are delighted that our EbixExchange platform was chosen to underpin Willis Accounting which is supported by our renowned team of experts.” Yesterday, shares soared close to their 52-week high after the company announced an offer to acquire Xchanging Plc, a business processing outsourcing company, for $684 million.

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