Analysts Weigh In on Two Falling Biotechs: Pacific Biosciences of California (PACB), Osiris Therapeutics, Inc. (OSIR)
Jason Cohen, Editor — February 4, 2016, 1:43 PM EDT Analysts are weighing in on biotech companies Pacific Biosciences of California (NASDAQ:PACB) and Osiris Therapeutics, Inc. (NASDAQ:OSIR), as shares of both companies fell sharply today following earnings results and CEO resignation, respectively.
Pacific Biosciences of California
Pacific Biosciences shares are tumbling nearly 20% after Piper Jaffray analyst William Quirk downgraded the name from an Overweight to a Neutral rating with a price target of $11.00, citing limited upside prospects.
On the flip side, Cantor analyst Bryan Brokmeier reiterated a Buy rating and price target of $18 on the stock, following the company’s fourth-quarter results.
Brokmeier wrote, “We recommend that investors BUY shares of PACB, especially following last night’s earnings results. 2016 revenue guidance was significantly higher than even our Street-high estimate. Interestingly, the company guided total revenue to be equal with 2015. It’s important to note that management has historically been conservative with guidance. Hence, guiding to product and service revenue growth that achieves at least flat total revenue growth is a really positive sign, but we don’t believe that management is overreaching.”
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, analysts William Quirk and Bryan Brokmeier have a yearly average return of -3.5% and 7.8% respectively. Quirk has a success rate of 43% and is ranked #2,706 out of 3,689 analysts, while Brokmeier has a success rate of 44% and is ranked #526.
Out of the 3 analysts polled by TipRanks, 2 rate Pacific Biosciences stock a Buy, while 1 rates the stock a Hold. With a return potential of 49%, the stock’s consensus target price stands at $14.50