Keryx Biopharmaceuticals (KERX) Selloff 'Unwarranted'

February 4, 2013 2:33 PM EST
Get Alerts KERX Hot Sheet
Price: $5.64 -6.47%

Rating Summary:
    8 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Last Friday, Keryx Biopharmaceuticals Inc. (Nasdaq: KERX) stock dropped 22 percent. The massive selloff is being tied to $65 million in equity financing announced last week. According the analysts at Oppenheimer, some investors interpreted this as a signal that the company was planning to market Zerenex instead of looking to sell itself. In the view of analysts, this interpretation is not correct and the related selloff is "unwarranted."

"We believe the financing does not prevent an acquisition, and puts the company into a strong negotiating position with a potential partner/acquirer. Furthermore, we believe that this sell-off was unwarranted, and we view the current price as an attractive entry point into the stock," said analyst Boris Peaker.

Peaker said he believes the stock is undervalued without even considering an acquisition premium.

Oppenheimer has an Outperform rating on Keryx Biopharmaceuticals with a price target of $11.

For an analyst ratings summary and ratings history on Keryx Biopharmaceuticals (NASDAQ: KERX) click here. For more ratings news on Keryx Biopharmaceuticals click here.

Shares of Keryx Biopharmaceuticals closed at $7.11 yesterday.

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