Brean Capital Boosts Onyx Pharma (ONXX) Price Target to $160
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Price: $124.70 --0%
Rating Summary:
9 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Brean Capital today maintained a Buy rating on Onyx Pharmaceuticals (NASDAQ: ONXX) and raised its price target to $160.00 (from $115.00). The change follows news Onyx Pharmaceuticals received an unsolicited bid from Amgen Inc. (Nasdaq: AMGN).
"Our $115 valuation for ONXX shares is based on a fully expensed, fully taxed cash flow assumptions. It does not consider any cost savings that we believe would be available to the vast majority of potential pharma acquirers that have an oncology focused commercial infrastructure," said analyst Gene Mack.
"Looking at a transaction from that perspective allows for price-to-sales multiple of 2-5x. Using a 3x multiple on our peak sales forecast for Kyproli/Oprozomib of $4B and combined revenue forecasts for Nexavar, Stivarga and Palbociclib of approximately $600M, we can justify an acquisition of $160 per share, which is our new price target for the company," he added.
For an analyst ratings summary and ratings history on Onyx Pharmaceuticals (NASDAQ: ONXX) click here. For more ratings news on Onyx Pharmaceuticals click here.
Shares of Onyx Pharmaceuticals closed at $86.82 yesterday.
"Our $115 valuation for ONXX shares is based on a fully expensed, fully taxed cash flow assumptions. It does not consider any cost savings that we believe would be available to the vast majority of potential pharma acquirers that have an oncology focused commercial infrastructure," said analyst Gene Mack.
"Looking at a transaction from that perspective allows for price-to-sales multiple of 2-5x. Using a 3x multiple on our peak sales forecast for Kyproli/Oprozomib of $4B and combined revenue forecasts for Nexavar, Stivarga and Palbociclib of approximately $600M, we can justify an acquisition of $160 per share, which is our new price target for the company," he added.
For an analyst ratings summary and ratings history on Onyx Pharmaceuticals (NASDAQ: ONXX) click here. For more ratings news on Onyx Pharmaceuticals click here.
Shares of Onyx Pharmaceuticals closed at $86.82 yesterday.
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