After a difficult 2023, biopharma investors won’t necessarily have it any easier in 2024, analysts at UBS argued in a note to clients on Tuesday.
“BioPharma investors will be happy to shut the door on a tough 2023,” the analysts wrote, noting that the sector declined more than 5% during the year.
Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) received an Outperform rating and a target price of $160 from Baird, citing optimistic expectations for the company's performance in the coming year.
Initiating coverage of the stock, Baird analysts are anticipating a positive trend for Jazz over the next year, driven primarily by the growth of key business products, particularly Xywav – a narcolepsy treatment – and Epidiolex, an oral cannabinoid solution for severe epilepsy.
Bristol-Myers Squibb Co (NYSE:BMY, ETR:RM, OTC:BMYMP) has been downgraded by Bank of America (BoA) analysts given the mixed performances of the drugmaker’s newly launched products and lack of clarity on long-term growth.
They lowered their rating on the stock from ‘Buy’ to ‘Neutral’ and slashed their price target from US$68 to US$60.
Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) has room for margin upside in 2024, with Prime video ads providing nice boost, according to Bank of America analysts.
In an update to clients, the analysts noted that Amazon could see up to $5 billion in incremental revenue potential from new subscription and ad revenue for Prime Video, contributing 370 basis points to 2023 North America margins.
Intra-Cellular Therapies has earned an ‘Outperform’ rating in its initial coverage from Baird analysts who believe the biotechnology company’s strong sales are poised to continue for its lead therapy Caplyta, which is approved for the treatment of schizophrenia and bipolar depression.
They also awarded the stock a US$83 price target. Shares traded hands on Wednesday at US$70.
Amylyx Therapeutics shares have limited downside ahead of a Phase 3 trial of Relyvrio, an ALS treatment candidate, according to Baird.
Analysts have initiated coverage on the stock with an Outperform rating and a $37 price target.
Amgen Inc (NASDAQ:AMGN, ETR:AMG) stock is poised to move higher in 2024 on a thesis its Phase II drug AMG133 for obesity will report positive data, according to Jefferies analysts.
In an update to clients, the analysts raised their price target on Amgen stock to $345 per share, from $310, on expectations of positive Phase II data for AMG133 in 2024 as well as preparations for a move to Phase III, which would start in 2025 and set up for a drug launch in 2027-28.
Deutsche Bank analysts have pointed to prospective interest rate cuts, subsiding inflation, and real wage growth as reasons to be optimistic about the UK economy heading into 2024.
“It's hard for economists to be too optimistic at the start of any year,” the bank said in a research note.
This year will be key for companies adopting artificial intelligence (AI), Morgan Stanley (NYSE:MS) analysts have predicted, after 2023 was all about the enablers of the emerging tech.
Following a roughly US$6 trillion market capitalisation gain by those developing AI in 2023, analysts at the US bank laid out expectations in a research note that the key beneficiaries of such models would now be those incorporating AI into their businesses.
The investment banking arm of Barclays has topped up the list of small- and mid-cap stocks (SMIDs) to reflect changing trends going into 2024 - adding four food companies to its 'universe'.
It has initiated coverage of Cranswick PLC (LSE:CWK), the sausage maker, with an 'overweight' recommendation and £45.80 share price target. At the same time, it has set 'equal weight' calls for Greencore Group PLC (LSE:GNC) and Premier Foods shares with stock price valuations of £1.10 and £1.40 respectively.
Analysts believe reports of Aldi’s "record" Christmas trading aren't all that they seem and instead believe the discount supermarket saw like-for-like volumes decrease.
"Aldi kicks the season off with an own goal," Shore Capital's Clive Black said.
Novo Nordisk (NYSE:NVO) was the European stock market success of last year, on the back of its anti-obesity drug Wegovy/Ozempic, but analysts at Jefferies wonder if the valuation may be nearing the top as rivals including Pfizer and AstraZeneca work on rival weight loss drugs.
2024 is expected to see at least 20 possible clinical updates in obesity from 10 or more companies, which the investment bank said highlights the potential for significant competition facing Novo and Eli Lilly in the future.
GSK PLC (LSE:GSK, NYSE:GSK) shares got a shot in the arm this morning after Jefferies took a more positive view of the pharmaceuticals giant.
The US investment bank upgraded its rating to ‘buy’ from ‘hold’ and increased its price target to 1,900p from 1,550p as the shares look "deeply discounted" based on current net present value.
Deliveroo PLC (LSE:ROO) is expected to return around £250 million to investors over 2024, analysts at Jefferies believe.
The delivery company is expected to have a closing net cash balance of over £700 million by the end of the current financial year.
Entain PLC's (LSE:ENT) appointment of hedge fund boss Ricky Sandler, one of four activist investors pushing for change at the FTSE 100 company, has been hailed as a potential "share price catalyst" by analysts.
The Ladbrokes and PartyPoker owner announced its new non-executive director from Eminence Capital this morning, saying Sandler was also joining the board's hiring committee, so would help with the appointment of a further non-executive.
News of C4X Discovery Holdings PLC (AIM:C4XD)’s latest payment from AstraZeneca PLC (LSE:AZN) solidifies and validates the company’s place as a skilled drug developer, analysts have said.
Following the firm’s update that US$11 million had been received under a deal worth up to US$400 million with AstraZeneca for the NRF2 activator programme, Shore Capital analysts backed aim-listed C4X.
Ahead of Burberry Group PLC's (LSE:BRBY) trading update on 19 January, US investment bank Stifel has cut its recommendation for the luxury fashion brand to 'hold' from 'buy' with a reduced price target for the shares, which are currently testing new three-year lows.
The decision to downgrade Burberry's stock status stems from Stifel's revised expectations for the company's financial performance.
Citi said it expects Next PLC (LSE:NXT) to exceed its own sales guidance in the crucial, Christmas-focused fourth quarter with Reiss as its "little helper".
The investment bank is predicting full-price sales growth of 4% - double the number put in the market by the clothes retailer. Citi does admit, however, that it is working with a limited dataset.