Roth Capital Says to Buy Ligand Pharma (LGND) on Today's 'Bad' Downgrade
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall St. slips on earnings; Apple results due
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- Panera Bread (PNRA) Tops Q3 EPS by 3c; Raises Outlook
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Roth Capital affirms Ligand Pharma (Nasdaq: LGND) at Buy with a price target of $149 following Deutsche Bank's downgrade to Sell on the stock today.
Analyst Joseph Pantginis commented today,
Our ongoing thesis for Ligand has been one of accumulation over the long term and believe today's weakness offers an opportunity for just that. There has been no call, to date, by the competitor and has been in cruise control at Hold, until now. Except, we believe that there is no call here. While we always maintain vigilance on valuation, the meandering, almost random, thoughts in the downgrade are very short-sighted, in our belief. It focuses on risk to the core revenues of Promacta and Kyprolis and places little to no emphasis on pipeline valuation and upcoming drivers.
We have consistently addressed many of the underlying themes in our case that were included in today’s downgrade. We will address a few. Regarding revenue momentum, it not only remains growing, it is being added to (e.g. Evomela - 20% royalty). The core Promacta and Kyprolis revenue is buffered and we have emphasized some potential volatility for Kyprolis due to the competitive landscape (i.e. Darzalex) but KOLs point to the need for a proteasome inhibitor as a backbone to multiple myeloma therapy. Both drugs continue to grow, and get additional label expansions and geography approvals and represent a core base and a buffer to downside. Regarding the pipeline, we maintain that the later stage clinical assets hold significant value and a key catalyst this quarter is the Phase IIb readout of the DUET study for Retrophin's sparsentan in FSGS, the analyst noted.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Deutsche Bank (DB) Said to Weigh Alternatives to Cash Bonus Payments - Bloomberg
- Intersil (ISIL) PT Bumped to $22 at Stifel
- Roth Capital Downgrades FuelCell Energy (FCEL) to Neutral on Beacon Falls Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Trader Talk
Related EntitiesDeutsche Bank, Roth Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!