Tuesday Morning’s Market Insights: KaloBios Pharmaceuticals Inc (KBIO), Sunedison Inc (SUNE), Palo Alto Networks Inc (PANW), Synthetic Biologics Inc (SYN)

KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shares are trading down nearly 2% this morning. The biotech company released a Form 8-K yesterday after the close, notifying the investing public that Nasdaq threatened to delist the company from the market. In a letter to the company, dated November 17, Nasdaq informed KBIO that it is not currently complying with listing requirements because it did not file a third quarter report ending September 30, 2015 with the SEC. The latter states that KBIO has 60 days from November 17, 2015 to provide a Nasdaq with a plan for how they will comply with the rules. KBIO states that they plan on complying with these requirements before the deadline.  Once the plan is accepted, the company will be granted up to a 180 day extension to file its Q3/2015 report. KaloBios stock soared nearly 1800% since last week after news that Turing Pharmaceuticals CEO Martin Shkreli gained a 70% stake in the company, becoming the KBIO’s new CEO.

Sunedison Inc (NYSE:SUNE) shares rose nearly 7% this morning shortly after news that the company plans on selling 400 megawatts of solar capacity in India for $350 million. This move stems from the company’s need to rid itself of assets to benefit its balance sheet. The company wants to sell assets in order to raise near-term capital as they recently posted a higher than expected loss this past quarter. The company’s Asia Pacific President Pashupathy Gopalan stated “to grow you need capital. Our balance sheet does not have the necessary capital.” However, the company is not completely retreating from India, as it won an auction for a 500 megawatt project in Andhra Pradesh earlier this month. According to TipRanks’ statistics, out of the 12 analysts who have rated SUNE in the last 3 months, 8 gave a Buy rating, 1 gave a Sell rating, and 3 remain on the sidelines. The average 12-month price target for the stock is $12.63, marking a 321% upside from where shares last closed.

SUNE Consensus

Palo Alto Networks Inc (NYSE:PANW) shares are up 6% in early morning trading after the company released its Q1/2016 earnings release yesterday after market close. The company reported record revenues of $297.2 million and earnings of $0.35 per share, exceeding analysts’ expectations of $284.4 million in revenue and earnings of $0.32 per share. CEO Mark McLaughlin stated “We had a very strong start to fiscal year 2016 that included achieving our highest fiscal first quarter revenue and billings year-over-year growth rates since going public. We believe that our success is due to our unwavering commitment to solving our customers’ most complex security challenges with the industry’s most innovative technology…it is clear from our results that our natively integrated and automated next-generation platform is resonating very well as the long-term strategic answer for customers’ security needs.” Palo Alto CFO Steffan Tomlinson stated, “We reported record revenue in the fiscal first quarter as robust new customer acquisition and expansion within our existing customer base drove strong demand for our appliances and subscription services.”

After earnings release, analyst Andrew Nowanski of Piper Jaffray weighed in on the stock, reiterating an Overweight rating and raising his price target to $208 from $200. He states “Palo Alto continues to exceed expectations across all metrics. Revenue beat the high-end of guidance by 4.6%, which is in-line with the historical average, and billings growth hit a record level for FQ1. More importantly, management said the spending environment remains robust and the pipeline heading into FQ2(Jan) is healthy. With operating margin on track to hit the targeted range by the end of FY16, we believe management is doing a good job balancing revenue growth and profitability. Due to the positive outlook management provided, we are raising estimates and our price target to $208 (previously $200) and reiterate our Overweight rating.”

According to TipRanks statistics, out of the 20 analysts who have rated PANW in the last 3 months, 18 gave a Buy rating while 2 remain on the sidelines. The average 12 month price target for the stock is $203.22, marking an 18% upside from where shares last closed.PANW Consensus

Synthetic Biologics Inc  (NYSEMKT:SYN) is down nearly 3% Tuesday morning, despite positive news that the U.S Patent and Trademark Office granted a patent allowing the use of various compounds, including the active agent in its SYN-10. SYN-10 is a treatment for IBS with constipation. Specifically, SYN-010 releases lovastatin lactone, which reduces methane production “in the gut while minimizing disruption to the microbiome”. The drug targets the major cause of IBS-C, not just the symptoms.  CEO Jeffrey Riley stated, “This new patent will strengthen the protection of SYN-010 in the U.S. and complements existing foreign patents.” He continued, “We continue to bolster the Company’s patent estate while making progress toward our goals to report Phase 2 topline results from both our IBS-C and prevention of C. difficile infection programs this quarter.”

According to TipRanks’ statistics, out of the 3 analysts who have rated SYN in the last 3 months, all gave a Buy rating. The average 12-month price target for the stock is $7.33, marking a 159% upside from where shares last closed.

SYN Consensus


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