4 Hot Analyst Morning Reads For Tuesday, October 2nd

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

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Today, we will try to rebound from the just over one percent losses the biotech sector suffered yesterday to start a new trading week. Here are four small biotech/medical stocks garnering positive analyst attention this morning before the bell this Tuesday.

Cantor Fitzgerald maintains its Buy rating on Acadia Pharmaceuticals (ACAD) this morning with a $25 price target. The stock has been on a roll since the FDA did not find the safety issues around the company's drug Nuplazid that a couple of CNN articles alluded to with little evidence (it is CNN after all). I went into detail around this saga last week in this article. Here is what Cantor has to say about this biopharma this morning.

“We are Overweight on ACAD with a 12-month PT of $25 based on NUPLAZID/pimavanserin in PDP/other neuropsych indications. Our contrarian view is based on long-standing & recently updated pima’ diligence, leading us to dismiss issues raised in the media that have challenged, albeit we believe temporarily, NUPLAZID sales & ACAD shares. Why? NUPLAZID remains the only agent approved for PDP against a class of atypical antipsych drugs used off- label with known safety challenges. We believe the FDA continues to see clinical benefit that outweighs risk, thus recently approving a new dosage form and making a public statement. In our view, new patient/revs growth should resume as an awareness campaign gains traction yet in ‘18.”

Jefferies reiterates its Buy rating and $135 price target on Intercept Pharmaceuticals (ICPT) this morning after recent mixed data on Gilead Sciences' (GILD) NASH candidate. Here is why Jefferies thinks Intercept is going higher.

'The stock is likely to retrace back up into year-end and the first half of 2019 as Street realizes Intercept's Phase III will be positive and de-risked. The company has had various competitor Farnesoid X receptor data in Phase I/II read out over the past year or and that these have ended up not too differentiated. This has removed some of the competitive overhang on Intercept'

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Morgan Stanley is upping their price target on Boston Scientific (BSX) by a sawbuck to $48 a share this morning based on recent acquisitions. Here is the synopsis of the more optimistic view on Boston Scientific at Morgan.

'The company's recent deal activity reflects an accelerating M&A climate, maturing venture portfolio and upcoming access to $2B in annual free cash flow and does not suggest a weakening of its core business. The deal by deal analysis suggests management's assumptions for the contributions from M&A appear conservative'

Melinta Therapeutics (MLNT), whose stock has been cut by two thirds so far in 2018, gets its Buy rating and $14 price target reiterated at H.C. Wainwright before the bell. Here is Wainwright's view.

'We note that Orbactiv is already approved by the EMA, whereas a MAA has yet to be filed for Minocin. While we await an 8-K filing for more details on the financial terms of this agreement, we point to three more near-term milestones for MLNT: (1) seven posters and one oral presentation later this week at Francisco (we are in attendance for the full duration); (2) sales and prescription trends from the 3Q18 results expected in early the pivotal Phase 3 data for Baxdela in community-acquired bacterial pneumonia (CABP) before year end.'

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

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