TipRanks
0
All posts from TipRanks
TipRanks in TipRanks,

Tuesday Morning’s Market Insights: SolarCity Corp (SCTY), MannKind Corporation (MNKD), Alexza Pharmaceuticals, Inc. (ALXA), NewLink Genetics Corp (NLNK)

By Shira Gonen

SolarCity Corp (NASDAQ:SCTY) is falling 20% in early morning trading after the company reported Q1:16 earnings yesterday after market close. The company posted revenues of $122.6 million and a loss of $(2.56) per share, compared to consensus estimates of $105 million and a loss of $(2.30) per share. The company stated that it has been a “rocky road” recently, guiding a Q2 loss of ($2.70- $2.80) per share, way above the loss of $(2.30) per share predicted by analysts. Management attributes this weakens due to light bookings and an increase in customer acquisition costs. Other concerns include the company’s rate of cash burn.

Following earnings, analyst Ben Kallo of Baird weighed in on the stock with a Neutral rating, decreasing his price target to $37 from $47. He states, “We want to get more constructive on the stock but think management has ruined its credibility for now, although the Musk/Reeve relationship should attract long-term growth investors.” He continued, “We believe the stock will be under pressure as investors recalibrate expectations, which could provide an attractive entry point.”

According to TipRanks statistics, out of the 12 analysts who have rated the company in the past 3 months, 5 analysts are bullish, 1 is bearish, and 6 remain on the sidelines. The average 12-month price target for the stock is $31.50, marking a 40% upside from where shares last closed.

 

MannKind Corporation (NASDAQ:MNKD) is down 17% in early morning trading after reporting Q1:16 earnings yesterday after market close. The company reported a loss of ($.06) per share, worse than estimates of a loss of ($.04) per share. The company is set to provide more details in its earnings call scheduled for today at 5:00 P.M. EST. The company also announced the providing of a registered direct public offering of more than 48 million shares of common stock and warrants.

Following earnings, analyst Joshua Schimmer of Piper Jaffray reiterated an underweight rating on the company but raised his price target to $0.10 from $0.05 as a result of its ability to generate financing. The analyst mainly commented on the Afrezza relaunch strategy and the aforementioned new financing, stating, “This seems to extend the company’s cash runway through early 2017, although there are a number of debt obligations which will need to be funded. We still struggle to see how MNKD’s cash-strapped launch plans can drive meaningful adoption of Afrezza in a difficult insulin market where diabetes specialists we’ve spoken to see it as a niche drug at base.”

According to TipRanks’ statistics, out of the 4 analysts who have rated the company in the past 3 months, 3 gave a Sell rating while 1 remains on the sidelines. The average 12-month price target for the stock is $0.15, marking an 89% downside from where shares last closed.

 

Alexza Pharmaceuticals, Inc. (NASDAQ:ALXA) is soaring over 66% in early morning trading after the company announced it would be acquired by Ferrer Pharma for $0.90 per share in cash. Stockholders are also eligible to receive additional cash payments in 4 payment categories pending the completion of certain milestones.  The transaction is expected to complete in Q2:16. President and CEO of Alexza Thomas B. King stated, “We see Ferrer as the ideal company to acquire Alexza as we continue to strive toward global commercial success with ADASUVE and to re-energize our Staccato-based product pipeline.” He continued, “Over the past four years, we have come to appreciate their professionalism, passion, dedication and commitment to Alexza’s technologies, products and people. With this combination, we feel that Alexza’s products will be well positioned for long-term success in serving important patient needs.”

NewLink Genetics Corp (NASDAQ:NLNK) is plummeting close to 35% in early morning trading after the company’s cancer vaccine failed a late stage study. The vaccine was intended to boost the patient’s immune system to recognize and kill cancer cells, but failed to do both. The results indicated that the company’s pancreatic cancer vaccine failed to prolong survival in patients compared to the standard therapy. In fact, the patients treated with the vaccine lived for a median of 27.3 months following the phase 3 trial, compared to 30.4 months with the standard therapy, which could suggest that the vaccine does more harm than good. Questions now arise of why the company did not allow independent data monitors to perform interim analysis on the vaccine.

Following these results, Cantor analyst Mara Goldstein maintained a Buy rating on shares but cut her price target to $20 from $62. While the company failed miserably with its vaccine, the analyst believes the company’s IDO platform represents “an important valuation backstop.”

According to TipRanks, all 3 analysts who have rated the company in the past 3 months gave a Buy rating. The average 12-month price target for the stock is $21.50, marking a 30% upside from where shares last closed.