Analyst Update: ADMA Biologics Inc, Seres Therapeutics Inc, and Heron Therapeutics Inc

Analysts revised their ratings and price targets on ADMA Biologics Inc (ADMA), Seres Therapeutics Inc (MCRB), and Heron Therapeutics Inc (HRTX)

by Kirra Fedyszyn

Published on Aug 1, 2016 at 2:52 PM

Analysts are weighing in on biotech stocks ADMA Biologics Inc (NASDAQ:ADMA)Seres Therapeutics Inc (NASDAQ:MCRB), and Heron Therapeutics Inc (NASDAQ:HRTX)Here's a quick roundup of today's brokerage notes on ADMA, MCRB, and HRTX. 

  • ADMA is off 21.8% at $6.14 after Raymond James and Maxim both cut their ratings of the stock to the equivalent of "hold," while Ladenburg Thalmann lowered its price target to $12.50 from $17.50. ADMA Biologics Inc announced Friday evening that it received a Complete Response Letter from the U.S. Food and Drug Administration (FDA) for its RI-002 treatment for Primary Humoral Immunodeficiency Disease. The shares were sitting just shy of their year-to-date breakeven mark heading into today's session, and are now testing a familiar level of support at the $6 level, which limited the stock's pullbacks twice in the last few months. Bears should be cheering today, however, as short interest increased by 44.5% over the two most recent reporting periods.
  • A downgrade to "neutral" from "buy" at BofA-Merrill Lynch, along with a round of price-target cuts, has MCRB sinking 10% to $9.85 after the stock crashed more than 69% on disappointing drug news last Friday. Goldman Sachs made a particularly deep cut to its outlook, lowering its price target to $9 from $30 -- representing a discount to Seres Therapeutics Inc's current trading price, and not far above the stock's recent record low. MCRB could face deeper losses if more analysts follow suit, as all five covering brokerage firms rate the stock a "strong buy," leaving plenty of room for downgrades. 
  • Upbeat results in a phase 2 study of its post-operative pain management treatment have HRTX 3.7% higher at $17.24 -- though the shares are still down 35% year-to-date. Cantor Fitzgerald and Lake Street Capital both reiterated bullish "buy" ratings and their respective price targets of $41 and $45. Call buyers should be pleased with today's rally, as Heron Therapeutics Inc calls have been bought to open over puts at a more than 18-to-1 ratio over the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Moreover, the resulting call/put volume ratio sits higher than nearly three-quarters of all readings in the past 12 months.
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