Post by tomsylver on Mar 3, 2017 9:53:55 GMT
blogs.barrons.com/stockstowatchtoday/2017/03/02/tesaro-shares-could-jump-on-a-buyout-offer/?mod=yahoobarrons&ru=yahoo&yptr=yahoo
By Teresa Rivas
Tesaro (TSRO) is trading lower on Thursday, although Credit Suisse thinks that could change quickly if the company becomes an acquisition target, thanks to its late-stage cancer treatment.
Analyst Alethia Young and her team reiterated an Outperform rating on Tesaro and boosted their target price from $151 to $198, writing that they think the company will be bought, and it will be a “competitive process” that will drive the share price up.
More detail from the note:
We would expect the takeout to occur at levels higher than current trading. We think oncology assets remain scarce with many global biopharma players looking for them. We would expect this could increase the bidding pressure for Tesaro’s PARP and emerging IO franchise. From the conference call, we learned the company is continuing to make progress in expanding development for their PARP niraparib as well as their IO platform. Over the course of 2017 we expect to learn more about niraparib’s profile in other indications outside of ovarian cancer as well as learn more about the development strategy for the IO portfolio. We view the IO platform as a key driver of upside due to the company having many novel assets in house (PD1, TIM-3, LAG-3).
By contrast, Leerink last week downgraded Tesaro to Hold, writing that the speculation about a takeover had driven the shares up too much already.
By Teresa Rivas
Tesaro (TSRO) is trading lower on Thursday, although Credit Suisse thinks that could change quickly if the company becomes an acquisition target, thanks to its late-stage cancer treatment.
Analyst Alethia Young and her team reiterated an Outperform rating on Tesaro and boosted their target price from $151 to $198, writing that they think the company will be bought, and it will be a “competitive process” that will drive the share price up.
More detail from the note:
We would expect the takeout to occur at levels higher than current trading. We think oncology assets remain scarce with many global biopharma players looking for them. We would expect this could increase the bidding pressure for Tesaro’s PARP and emerging IO franchise. From the conference call, we learned the company is continuing to make progress in expanding development for their PARP niraparib as well as their IO platform. Over the course of 2017 we expect to learn more about niraparib’s profile in other indications outside of ovarian cancer as well as learn more about the development strategy for the IO portfolio. We view the IO platform as a key driver of upside due to the company having many novel assets in house (PD1, TIM-3, LAG-3).
By contrast, Leerink last week downgraded Tesaro to Hold, writing that the speculation about a takeover had driven the shares up too much already.
