4 Hot Analyst Morning Reads For Friday, September 14th

A synopsis of recent analyst activity that could buoy these small cap biotech stocks in trading today

That's always seemed so ridiculous to me, that people want to be around someone because they're pretty. It's like picking your breakfeast cereals based on color instead of taste. John Green, Paper Towns

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After what was a promising end to August, the biotech sector has been volatile and mostly down through the first half of September. The major biotech indices are down four to five percent so far this month with the small cap issues taking the brunt of the damage. Hopefully we can end the trading week on an up note today and start seeing more positive action from this high beta part of the market.

Here are four small cap biotech and medical device stocks garnering positive analyst commentary right before the bell this morning.

Raymond James is raising its price target on BioTelemetry (BEAT) this morning to $66 from $57 previously. James' analyst believes the company's 'seamless integration of the Lifewatch acquisition combined with new product introductions has increased growth and driven improved visibility.'

Merrill Lynch is initiatingZogenix (ZGNX) today with a Buy rating and $63 price target. Here is the color from that new analyst call.

'Lead asset, ZX008, could become a best-in-class treatment for pediatric epilepsies with a focus on Dravet Syndrome. The analyst said there is an unmet need and we are modeling world-wide peak sales of $3.4B, higher than peak sales achieved by other anti-epileptic drugs and anticonvulsants.'

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Needham is assigning a new Buy rating and $139 price target on Masimo (MASI) this morning. Here is the synopsis from Needham's colorful view

'The "medical world is beating a path to its door" after the company has built a "better pulse oximeter". The company's Philips partnership accelerating its product revenue growth, even though the overall revenue growth and margins will likely be constrained by the upcoming "royalty and other revenue cliff". Masimo can deliver upside in earnings and the analyst believes that consensus is too conservative, but also notes that the stock trades at a 21% premium in forward earnings multiple relative to its medical device peers.'

Finally, after just meeting with management, Oppenheimer is reissuing their Market Outperform rating and $74 price target on Global Blood Therapeutics (GBT) this morning. Here is the analyst commentary from that just issued view

Thursday, we attended the 7th annual NYC, featuring testimony from KOLs and patient advocates describing gaps in the current treatment landscape for sickle cell anemia (SCA). Much of the discussion focused on the inadequacy of currently available therapies and insufficient access to medical care, leaving patients with sustained risk of debilitating pain, fatigue, organ damage, and substantially shortened life expectancy. Reflecting an evolution in the hematology communitys understanding of the disease, the FDA and the Hematology (ASH) are hosting a public workshop next month aimed at reforming registrational endpoints for SCA clinical trials. We believe the outcome of this workshop could greatly improve voxelotors chances for accelerated approval. Reiterate Outperform, $74 PT.

And those are four small cap biotech and medical device stocks garnering positive analyst commentary this Wednesday. Happy Hunting.