Wall Street analysts are weighing in on biopharmaceutical company Chimerix Inc (NASDAQ:CMRX) and hardwood-flooring maker Lumber Liquidators Holdings Inc (NYSE:LL), as shares of both companies fell sharply today, reaching record lows.
Shares of Chimerix are collapsing, down around 40% at time of writing, after the company presented full results from its brincidofovir’s Phase III SUPPRESS trial at BMT Tandem. In new data presented, no effect was seen on BK virus clinical disease, so the kidney transplant phase III trials will not resume.
However, Piper Jaffray analyst Joshua Schimmer remains optimistic, reiterating an Overweight rating on the stock, with a price target of $18, which represents a potential upside of 271% from where the stock is currently trading.
Schimmer commented: “CMRX hosted a call this morning to provide additional details on the SUPPRESS study and its decision to stop the kidney transplant P3 trials. The incremental information all seems to support the premise that the GI side effects of Brinci confounded the study because of confusion with GI GVHD. A competitor downgrade and some pretty intense cautionary introductory remarks regarding forward-looking statements will likely further pressure shares today, which are indicating well below cash. With multiple viable paths forward for the product including smallpox/adenovirus indications and an IV formulation, our confidence in brinci’s outlook is actually increased. While the biotech tape remains a challenging one, we believe Brinci progress in one form or another will drive meaningful share appreciation from current levels.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer has a yearly average return of -22.2% and a 18% success rate. Schimmer has a -41.5% average return when recommending CMRX, and is ranked #3633 out of 3637 analysts.
Out of the 11 analysts polled by TipRanks (in the past 3 months), 8 rate Chimerix stock a Hold, while 3 rate the stock a Buy. With a return potential of 256%, the stock’s consensus target price stands at $17.13.
Lumber Liquidators Holdings Inc
Shares of Lumber Liquidators tumbled nearly 18% following an updated report from the Centers for Disease Control and Prevention (CDC), saying that people exposed to certain types of the company’s laminate flooring were three times more likely to get cancer than the agency previously predicted. The issue came to the public’s attention in March 2015 when the CBS News program “60 Minutes” aired an investigation into Lumber Liquidators laminate floors sourced from China.
Stephens analyst Rick Nelson was the first to comment: “In the latest report the CDC estimated the risk of cancer was 6-30 cases per 100,000 people compared with the 2-9 cases it estimated on Feb. 10. The CDC said the revised results were preliminary. The CDC said it earlier used an incorrect value to calculate the ceiling height. CBS “60 Minutes” reported the updated results on Sunday. We expect the stock to give up gains from the earlier CDC report on Feb. 10.” The analyst reiterated a Hold rating on Lumber shares, without providing a price target.
According to TipRanks.com, analyst Rick Nelson has a yearly average return of -45% and a 0% success rate. Nelson has a -69.5% average return when recommending LL, and is ranked #3118 out of 3637 analysts.
Out of the 3 analysts polled by TipRanks (in the last 3 months), 2 rate Lumber Liquidators stock a Hold, while one rates the stock a Sell. With a return potential of 103%, the stock’s consensus target price stands at $23.83.