“Life can only be understood backwards; but it must be lived forwards.” ― Søren Kierkegaard
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The market had a pretty significant pullback in the high beta parts of equities last week. These falling sectors including semiconductor stocks, social media concerns, technology overall, emerging market stocks, energy shares and of course, biotech. After two solid weeks, the biotech sector declined substantially last week. We will try to get back on the winning path this week.
Before the opening bell on a new trading week, here are four small biotech concerns garnering positive analyst mention today.
Stephens is raising its price target on Glaukos (GKOS) to $70 this morning from $57 previously while maintaining its Overweight rating on the shares. This follows talks with key opinion leaders and a review of the FDA MAUDE database. Stephen's analyst believes 'the discussions and database review lead to the conclusion that the adverse event profile that leadNovartis (NVS)to withdraw the CyPass Micro-Stent is device specific and not indicative of a class issue and that Glaukos' long-term growth prospects and strategic value are both notably enhanced by the event'.
Aridis Pharmaceuticals (ARDS) gets initiated as a new Buy at Laidlaw this morning with a $21 price target. The analyst there 'believes the company's "fairly late stage differentiated clinical pipeline" could more efficiently fulfill unmet medical and financial needs.' Cantor Fitzgerald also just assigned a new Buy rating with a $25 price target on Aridis as well. It should be noted that this small cap concern just came public less than a month ago.
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H.C. Wainwright seems to be pushing Sorrento Therapeutics (SRNE) recently as its reiterates its Buy rating and $40 price target before the bell today. It is at least the second time in recent weeks they have done so. Here is the current color behind the call and huge price target (the stock trades at approximately $5.00 a share).
"We ascribe a value of $6.4B based on a sum-of-the-parts approach, or a price per share of $40.00, assuming 159M projected shares outstanding as of end-2Q 2019. The projected share count assumes conversion of all outstanding convertible notes and exercise of all outstanding options and warrants. Risks include, but are not limited to: (1) slower-than-anticipated clinical development; (2) negative trial data; (3) adverse regulatory decisions; and (4) inability to execute validating corporate partnerships. "
Finally, Quidel (QDEL) gets reissued as a Buy at Cantor Fitzgerald who bumps up its price target two bucks a share to $80 after meeting with management. Cantor's analyst cites 'rising demand for its new products and he expects the company to continue to take market share from larger companies Alere (ABT) and Becton Dickinson (BDX).' He also believes Quidel could draw takeover interest at some point from a larger concern in the industry.
And those are four small cap concerns seeing recent analyst activity before the market opens this Monday.