Cloud storage provider Salesforce.com (NYSE:CRM) remained an outperform rating by analysts at Wedbush although a poorly second quarter earnings report resulted in the share price target being dropped to $96 from $98 on Thursday.
“Although we're disappointed in 2Q results, we remain constructive on CRM shares in the 2H and on a 12-month basis. Our industry and partner checks don't point to any secular headwinds for CRM's business, nor do we see any structural changes in the company's market opportunity. Although there have been some concerns about the future impact of Brexit and the U.S. election voiced by management teams in our universe, we haven't seen any systematic signs of an industry-wide slowdown,” said Wedbush in a note.
Despite a 2Q beat, results were disappointing on balance, the broker added.
Salesforce.com shares ended down 4.4% at $75.91 on Thursday.
Meanwhile, in the pharma sector, Relypsa Inc (NASDAQ:RLYP) was downgraded to neutral from outperform by Wedbush and reduced its price target to $32.
The actions come as time has run out for a second bidder. “We anticipate completion of Galenica's acquisition of Relypsa shortly,” Wedbush said in a note.
Relypsa shares were unchanged at $31.99 as the takeover process has been instigated.
Audentes Therapeutics (NASDAQ:BOLD) is reiterated as a outperform and price target remains at $20 from Wedbush.
The broker said the firm expects to file INDs for three of its gene therapy programs before first quarter 2017 with preliminary data expected in the second quarter of that year.
“We believe positive data will likely result in accelerated development paths given the life-threatening nature of the diseases targeted,” Wedbush said.
Audentes shares closed down 4.2% at $14.99.