Analysts are weighing in on real estate investment company Northstar Realty Finance Corp (NYSE:NRF) and biopharma firm Corium International Inc (NASDAQ:CORI), as shares of both companies fell sharply today, hitting 52-week lows. The analysts reflect on Northstar’s headwinds and challenges, and Corium’s quarterly update.
Northstar Realty Finance Corp
KBW analyst Jade Rahmani downgraded shares of Northstar Realty from Outperform to Market Perform and reduced the price target to $13 (from $23), which implies an upside of 48% from current levels. While valuation suggests that upside may outweigh the downside, the analyst believes that the potential positives and negatives seem to cancel each other out.
Rahmani commented, “To date, we have recommended NRF based on the NAV valuation discount, believing that strategic actions by management (asset sales, share repurchases) could serve as a positive catalyst. Although a re-combination is one possible outcome of NSAM’s strategic review, NSAM has defended its management agreement as “non-terminable.” Considering the dynamics at play (asset sales, capital structure, external management, NSAM strategic review) and in light of recent capital markets volatility, we believe a successful repositioning of NRF is a tall and likely lengthy order that could leave NRF in a weaker financial position in a corporate structure that unless changed, may ultimately prove insurmountable.”
According to TipRanks.com, a site that tracks and ranks analysts on their predictions, analyst Jade Rahmani has a yearly average return of 0.9% and a 41% success rate. Rahmani is ranked #1512 out of 3556 analysts.
Corium International Inc
Needham analyst Serge Belanger reiterated a Buy rating on shares of Corium, while reducing the price target to $15.00 (from $16.00), after the company announced FY1Q16 results and updated its pipeline programs.
Belanger noted, “Our main takeaway is that CORI’s patch pipeline is growing (now five proprietary and partnered patches at clinical development stage) with increasing cadence of key data catalysts. Last week, CORI announced positive ph 1 results for its once-weekly proprietary Corplex donezepil transdermal patch. A second Corplex patch, this one with memantine, is expected to report results in late-February. The current product revenue stream (partnered generics and Crest Whitestrips) is seeing some stability but continues to face uncertainty due to the pending TEVA/generic Allergan transaction. We continue to believe in CORI’s proprietary patch programs as long-term value drivers. We maintain our Buy rating and adjust our $PT to 15 to reflect current product revenue trends.”
According to TipRanks.com, analyst Serge Belanger has a yearly average return of 7.2% and a 37.5% success rate. Belanger is ranked #665 out of 3556 analysts.
As of this writing, all the 3 analysts polled by TipRanks (in the past 3 months) rate Corium stock a Buy. With a return potential of 244%, the stock’s consensus target price stands at $16.