Orexigen (OREX) Surges On 'Aggressive' Buy Calls Ahead of Catalysts

September 6, 2012 3:42 PM EDT
Get Alerts OREX Hot Sheet
Price: $3.21 --0%

Rating Summary:
    3 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 12
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Orexigen Therapeutics, Inc. (NASDAQ: OREX) is getting a plethora of Wall Street love recently and shares are responding.

Today, Credit Suisse initiated coverage with an Outperform rating and $13 price target, suggesting 165 percent upside from Wednesday's close.

Credit Suisse is not the only firm hot for the stock. In a note to clients on Wednesday, Leerink Swann's Marko Kozul M.D. told them to "buy aggressively."

The excitement from Kozul stems from the faster than expected enrollment in the Contrave Light Study. The company now expected to close enrollment in the fourth quarter of this year, versus the first quarter of next year. While no formal change in guidance was given, the analyst believes the Contrave Light Cardiovascular Outcome Trial (CVOT) is "trending ahead of our expectations." Kozul believes OREX will ultimately move the interim timing to mid-13 or early 3Q13.

Drivers for the stock this month, according to the analyst, include: Obesity society meeting updates from VVUS and ARNA/Eisai (Sept 20-24) and VVUS meeting with EMA's CHMP over Qsymia Sept 18-20th with possible CHMP decision on Sept 21. "We believe a positive Qsymia opinion would benefit OREX as it puts Empatic in play for ex-US partnership."

Kozul is recommending aggressive buying of OREX stock and sees Sept-12 and 4Q12 updates as important catalysts.

Shares of OREX are up 16.7 percent today to $5.73.

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