Pharma behemoth Merck & Co (NYSE:MRK) may have missed the broker consensus target on revenues as well as Jefferies' own earnings per share forecast, but it remains a hold targeting US$53 after beating other brokers' earnings per share (EPS) expectations.
Jefferies said that fourth quarter non-GAAP EPS beat consensus by 2% to print 93 cents, up 7 cents year on year versus a broker consensus of 91 cents and Jefferies' 94 cents, primarily on a lower than expected tax rate and diluted share count. Revenues underwhelmed brokers by 1%, however, principally because of lower than expected Q4 2015 sales of the Januvia/ Janumet franchise.
Meanwhile, Dundee Research recommends Pozen (NASDAQ:POZN) as a buy in spite of a reduced target price of US$10 versus US$11 given a push in timing for the launch of YOSPRALA, a coated aspirin combination therapy.
Developed by Pozen, YOSPRALA could be a $200-$300 MM US opportunity alone, Dundee said in its note. "We believe this asset is worth up to $6.00 per share by itself, not considering expanded therapeutic use (colorectal cancer) and international rights sale," Dundee added.
Pozen is soon to be Aralez Pharmaceuticals.
Mackie Research Capital recommends Canadian miner AuRico Metals (TSE:AMI) as a buy targeting C$1.50 and opined the company had a solid first year with further growth ahead. The broker described the company as a discount royalty company with a “free development asset.”
Mackie said: "AMI has released Q4/15 results, with EPS of $0.00 meeting our estimate, while cash flow of ($0.03)/sh fell below our $0.00 forecast as a result of increased exploration expenditures."