Bank of America Corp. Downgrades ViroPharma to Underperform (VPHM)
ViroPharma (NASDAQ:VPHM) was downgraded by analysts at Bank of America Corp. from a “buy” rating to an “underperform” rating in a research report issued to clients and investors on Wednesday, Analyst Ratings Network.com reports. They currently have a $34.00 price target on the stock. Bank of America Corp.’s price objective would indicate a potential downside of 16.63% from the stock’s previous close.
The analysts wrote, “VPHM shares have increased 33% in response to a media article written Sep 12 speculating that the co has engaged an advisor to consider an auction of the business, and naming Sanofi and Shire as two potentially interested acquirers. While a VPHM acquisition could be financially attractive, we believe a number of longer term risks on the company’s core product, Cinryze, could affect any such acquisition. In our view, the biggest risk to Cinryze’s value is successful development of BCRX’s oral HAE drug (proof of principle data 2014). We believe the current VPHM share price reflects a not insignificant chance of the company being acquired. However, notwithstanding this, based on the product-related risks, we struggle to see any basis to increase our $34 PO. Thus, we are downgrading from Neutral to Underperform on valuation.”
ViroPharma (NASDAQ:VPHM) traded down 1.69% on Wednesday, hitting $40.09. 590,844 shares of the company’s stock traded hands. ViroPharma has a 1-year low of $22.12 and a 1-year high of $40.89. The stock’s 50-day moving average is $31.56 and its 200-day moving average is $28.2. The company’s market cap is $2.627 billion.
ViroPharma (NASDAQ:VPHM) last announced its earnings results on Thursday, August 1st. The company reported $0.15 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.01 by $0.14. The company had revenue of $104.00 million for the quarter, compared to the consensus estimate of $105.06 million. During the same quarter last year, the company posted ($0.06) earnings per share. ViroPharma’s revenue was up 9.6% compared to the same quarter last year. Analysts expect that ViroPharma will post $-0.78 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on VPHM. Analysts at Stifel Nicolaus raised their price target on shares of ViroPharma (NASDAQ:VPHM) from $41.00 to $47.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Separately, analysts at Oppenheimer raised their price target on shares of ViroPharma (NASDAQ:VPHM) from $44.00 to $54.00 in a research note to investors on Monday. They now have an “outperform” rating on the stock. Finally, analysts at Deutsche Bank reiterated a “fair value” rating on shares of ViroPharma (NASDAQ:VPHM) in a research note to investors on Friday, September 13th. They now have a $52.00 price target on the stock.
Seven research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $39.14.
ViroPharma Incorporated (NASDAQ:VPHM) is an international biotechnology company.
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