Thursday Morning’s Market Insights: Invivo Therapeutics Holdings Corp (NVIV), Prima BioMed Ltd (ADR) (PBMD), Avago Technologies Ltd (AVGO), Costco Wholesale Corporation (COST)

Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) shares rose 13% this morning after the company announced that it received conditional FDA approval of a study protocol amendment that will convert one of its pilot studies into a pivotal probably benefit study. Full approval from the FDA is expected within the next 30 days. The study is known as “The INSPIRE Study: InVivo Study of Probable Benefit of the Neuro-Spinal Scaffold for Safety and Neurologic Recovery in Subjects with Complete Thoracic AIS A Spinal Cord Injury”. Neuro-Spinal Scaffold is an spinal cord implant that is “designed to act as a physical substrate for nerve sprouting” following acute spinal cord injuries. The study aims to measure the proportion of patients with an improvement in the ASIA impairment Scale after 6 months. CEO Mark Perrin states, “This conditional approval marks one of the most significant corporate milestones the company has achieved to date. Being able to convert our pilot study into a small pivotal probable benefit study provides us with a very efficient path to commercialization. We anticipate completing enrollment in the pivotal probable benefit study and submitting an application for Humanitarian Device Exemption (HDE) approval in 2017.”

Prima BioMed Ltd (ADR) (NASDAQ:PBMD) soared 23% this morning following an initiated rating from analyst Vernon Bernardino of FBR capital. The analyst gave PBMD an Outperform rating with a price target fo $6.00. He attributes this rating to the company’s increased pipeline relative to 2014. He states, “We are initiating coverage of Prima BioMed Ltd. (PBMD) with an Outperform rating and a price target of $6 per share. Whereas PBMD had one active clinical program in 2014, the company now has three novel product candidates in active clinical development, including IMP321, IMP731, and GSK 2831781, with the latter two rapidly being advanced by two partners committed to their full evaluation. We believe the current valuation of Prima BioMed is disconnected from our estimation of the significant value PBMD has created in advancing its clinical-stage product pipeline.”

According to TipRanks’ statistics, analyst Vernon Bernardino has an 18% success rate recommending stocks with an average return of -20.4% per recommendation.

Vernon Bernardino Stats

Avago Technologies Ltd (NASDAQ:AVGO) was up 9% this morning following their Q4/2015 earnings release yesterday after market close. The chip manufacturer posted non-GAAP revenues of $1.8 billion and non-GAAP earnings of $25.1 per share, surpassing analysts’ estimates of $1.85 billion in revenue and earnings of $2.38 per share. CEO Hock Tan stated, “We finished fiscal 2015 on a very strong note, delivering record levels of revenue and profitability in our recently completed fourth quarter. The LSI acquisition and the synergies we have been able to realize through its integration, as well as strong year on year growth in wireless revenues were significant contributors to our 2015 results. We are excited by the anticipated opportunities to further increase our earnings potential in fiscal 2016 following completion of our pending Broadcom acquisition.” Following earnings, analyst Mike Burton of Brean Capital reiterated his buy rating on the stock an upgraded his price target to $180. He attributes his rating to better than expected Q4 results and guidance, citing “above-average diversified growth” and “industry leading profitability”.

According to TipRanks’ statistics, out of the 11 analysts who have rated AVGO in the last 3 months, 10 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for the stock is $164.60, marking a 24.5% upside from where shares last closed.

AVGO Consensus

Costco Wholesale Corporation (NASDAQ:COST) was up 2% in this morning following yesterday’s release of November sales figures. The company reported net sales of $9.68 billion for November, a 3% increase from the same period of last year. Following this news, Paul Trussell of Deutsche Bank upgraded the stock from Hold to Buy and increased his price target to $200 from $152. He states, “Earlier this year, we moved to the sidelines on COST due to valuation. It was the right call temporarily, but has since been proven too near-term focused as the market is clearly willing to pay a premium, in a tough retail backdrop, for traffic consistency, a steady income stream through membership, international growth opportunities, and, importantly, an Amazon-proof business model. Looking over the next 18 months, there are now too many catalysts to ignore (e.g. organic food growth, higher gas margins, credit card change to Visa, MFI increase) and so we are getting back on the bus.”

According to TipRanks’ statistics, out of the 13 analysts who have rated COST in the last 3 months, 10 gave a Buy rating while 3 remain on the sidelines. The average 12-month price target for the stock is $170.50, marking a 6% upside from where shares last closed.

COST Consensus


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