Stifel Nicolaus Downgrades Theravance to Underweight (THRX)
Theravance (NASDAQ:THRX) was downgraded by equities research analysts at Stifel Nicolaus to an “underweight” rating in a research note issued to investors on Monday. They currently have a $7.00 price target on the stock, down from their previous price target of $12.00. Stifel Nicolaus’ price target would indicate a potential downside of 74.86% from the stock’s previous close.
The analysts wrote, “In light of the THRX/TBPH split, we are updating our model for Royalty Co. (we do not cover TBPH). We still believe that the farther we are into the ramp of Breo (36 wks on mkt in US) and Anoro (12 wks on mkt in US), the more likely the stock will reflect a) our below consensus estimates, which line up well with current trends, b) a long-term inability to fund the current dividend, and c) the lack of room for add’l financial steps such as more leverage or acquiring a terminal value. To this last point, we note that a de minimus triple combo royalty to THRX (0.95% of sales to start, not currently modeled based on drug risk) is unlikely to serve as a meaningful source of terminal value.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Theravance in a research note on Friday. They now have a $28.00 price target on the stock. Separately, analysts at Citigroup Inc. downgraded shares of Theravance from a “buy” rating to a “hold” rating in a research note on Thursday, June 12th. Finally, analysts at Bank of America initiated coverage on shares of Theravance in a research note on Friday, June 6th. They set a “buy” rating on the stock. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $17.25.
Theravance (NASDAQ:THRX) traded down 0.57% on Monday, hitting $27.81. The stock had a trading volume of 582,981 shares. Theravance has a 52 week low of $20.2337 and a 52 week high of $34.5286. The stock’s 50-day moving average is $27.75 and its 200-day moving average is $26.82. The company’s market cap is $3.132 billion.
Theravance (NASDAQ:THRX) last announced its earnings results on Tuesday, May 6th. The company reported ($0.62) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.53) by $0.09. The company had revenue of $0.17 million for the quarter, compared to the consensus estimate of $4.52 million. During the same quarter in the prior year, the company posted ($0.39) earnings per share. The company’s quarterly revenue was down 87.3% on a year-over-year basis. On average, analysts predict that Theravance will post $-1.20 earnings per share for the current fiscal year.
Theravance, Inc (NASDAQ:THRX) is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies.
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