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The market and the biotech sector are having their best day by far so far in what has been a dismal start to the fourth quarter. The Dow is up nearly 500 points as we rapidly head to the market close on a great day for investors. Third quarter earnings reports have buoyed investor sentiment. Interest rates also seem to be stabilizing.
Here are two late breaking analyst calls that might boost these two small biotech stocks in trading on Wednesday.
Leerink Partners is not concerned about the weakness in Intersect ENT (XENT) today and we reissue their Outperform rating . The analyst 'attributes the underperformance today in shares of Intersect ENT (XENT) to Regeneron's (REGN) positive Phase 3 Dupixent data for chronic rhinosinusitis with nasal polyps. The Dupixent readout had always represented a potential headline risk for Intersect ENT during Q4. The analyst, however, thinks it's better to get the headline out of the way before a J-code decision in early November. Further, based on physician feedback around monoclonal antibodies, Leerink's analyst does not get the sense that these therapies will "necessarily derail" adoption of Intersect ENT's Sinuva or its total addressable market. The analyst continues to believe in-line Q3 results will be a "win" for Intersect ENT and he keeps an Outperform rating on the shares.'
Late in the day, Spero Therapeutics (SPRO) is reissued at Cantor Fitzgerald as an Overweight with a $27 price target and the following commentary.
We rate SPRO Overweight. As the company advances its pipeline toward commercialization, we expect upward earnings revisions and multiple expansion to levels not reflected in FactSet consensus expectations to drive SPRO’s stock higher. Valuation Summary We use a blend of EV/EBITDA and DCF analysis to arrive at our $27 12-month price target. The Disclosure Section may be found on pages 3 – 4.Valuation We use a blend of EV/EBITDA and DCF analysis to arrive at our $27 12-month price target.”
And that is two late breaking calls in what has been a terrific day for investors after a hard start to the third quarter.
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