Goldman Sachs Upgrades Onyx Pharmaceuticals (ONXX) to Buy
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Price: $124.70 --0%
Rating Summary:
9 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Goldman Sachs upgraded Onyx Pharmaceuticals (NASDAQ: ONXX) from Neutral to Buy with a price target of $40, suggesting 27% upside.
The firm is switching its buy to ONXX from UTHR, as they see more favorable combination of catalysts and upside potential. The firm cited: (1) recent pullback in ONXX shares provides an attractive entry point ahead of several catalysts (which we believe investors have low expectations for upside outcomes), (2) the Nexavar franchise is growing modestly ($994 mn 2011E sales, 6% yoy growth, 50/50 partnership with Bayer) but data from ongoing trials expected within the next 12-18 months could increase its peak sales potential, and (3) ONXX has a strong balance sheet (an incremental positive, given current market volatility).
Goldman said ongoing litigation with partner Bayer on Rego is the next potential catalyst. The trial is scheduled to begin on October 3. They estimates that 50% of rights to Rego could be worth $3-$5 per share to ONXX.
For more ratings news on Onyx Pharmaceuticals click here and for the rating history of Onyx Pharmaceuticals click here.
Shares of Onyx Pharmaceuticals closed at $31.05 yesterday.
The firm is switching its buy to ONXX from UTHR, as they see more favorable combination of catalysts and upside potential. The firm cited: (1) recent pullback in ONXX shares provides an attractive entry point ahead of several catalysts (which we believe investors have low expectations for upside outcomes), (2) the Nexavar franchise is growing modestly ($994 mn 2011E sales, 6% yoy growth, 50/50 partnership with Bayer) but data from ongoing trials expected within the next 12-18 months could increase its peak sales potential, and (3) ONXX has a strong balance sheet (an incremental positive, given current market volatility).
Goldman said ongoing litigation with partner Bayer on Rego is the next potential catalyst. The trial is scheduled to begin on October 3. They estimates that 50% of rights to Rego could be worth $3-$5 per share to ONXX.
For more ratings news on Onyx Pharmaceuticals click here and for the rating history of Onyx Pharmaceuticals click here.
Shares of Onyx Pharmaceuticals closed at $31.05 yesterday.
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