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Looking Back on Wall Street: Alibaba Group Holding Ltd (BABA), MannKind Corporation (MNKD), Juno Therapeutics Inc. (JUNO)

By Shira Gonen

Alibaba Group Holding Ltd

Alibaba Group (NYSE:BABA) made headlines this week as the online retail giant announced that it had reached a deal to purchase Youku Tudou Inc (ADR) (NYSE:YOKU), the “YouTube of China,” in a transaction valued at $4.8 billion. Alibaba wants to tap into China’s huge video streaming market, which currently reaches 461 million people. This deal is intended to diversify Alibaba’s services as well as double the traffic to its website.

Rob Sanderson of MKM Partners maintains a Buy rating on the stock. He believes this move is just what Alibaba needs to stay competitive and cater to the needs of its users. He states, “The move into digital media makes a lot of sense. The rise of Internet video is really undeniable around the world, so I think it’s a strategy that could produce quite a bit of leverage given the size of their communities.”

According to TipRanks, of the 25 analysts who have rated Alibaba over the last 3 months, 22 rated it as Buy, while 3 remained on the sidelines. The average 12-month price target for Alibaba is $94.18, marking an 18% upside from where the stock last closed.

 

MannKind Corporation 

MannKind Corporation (NASDAQ:MNKD) is in hot water following its Q3 earnings release. Analysts expected the biopharmaceutical company to post a loss of ($0.06), but the company reported a loss per share of ($.08). Analysts were not surprised by the disappointing earnings since Sanofi posted earnings last week, revealing that Afrezza sales had fallen flat. Sanofi is MannKind’s partner in producing Afrezza; the company’s breakthrough inhalable insulin for adults with diabetes. Analysts believe Afrezza sales were weaker than expected due to the lack of targeted advertising and insurance coverage for the drug, though some are optimistic that the company will develop a strategy to combat these factors. Furthermore, the Q3 earnings highlighted higher than normal cash burn for the quarter. In an attempt to gain capital, MannKind plans on selling up to 50 million shares to Israeli hedge funds.

Analyst Joshua Schimmer of Piper Jaffray reiterated an Underweight rating and a $1.50 price target on MNKD, attributing his rating to “the disappointing launch of Afrezza and increasing net-debt position.”

According to the 4 analysts polled by by TipRanks in the last 3 months, 1 has rated MNKD as Buy while the other 3 gave a Sell rating. The average 12-month price target for MNKD is $3.38, marking a 52% upside from where shares last closed.

 

Juno Therapeutics Inc.

Juno Therapeutics (NASDAQ:JUNO) has gained much attention from Wall Street this week. Before releasing Q3 earnings, analysts estimated that the company would post a loss of ($0.41) per share and revenues of $6.41 million. The earnings report posted disappointing revenues of $1.6 million and losses per share of ($0.53). Of specific concern to investors was the much higher than predicted rate of cash burn. The biopharmaceutical company has recently made headlines with its successful trials of cancer-fighting immunotherapy treatments. In small clinical trials, Juno’s blood cancer treatments had over a 90% success rate. Despite this achievement, analysts predict challenges for the company going forward, such as manufacturing costs, the high cost of the the treatment, and the long process of getting the treatment to market.

According to the 3 analysts polled by TipRanks in the last 3 months, 2 are bullish on the stock while 1 remains on the sidelines. The average 12-month price target for the stock is $71.50, marking a 37% potential upside from where shares last closed.