Analysts Target Biotech Name on Buyout Buzz

Three brokerages downgraded MRTX after the news

Laura McCandless

Deputy Editor

Oct 9, 2023 at 3:03 PM

BMY
MRTX

Mirati Therapeutics Inc (NASDAQ:MRTX) stock is dropping today, after news that Bristol-Myers Squibb (BMY) will acquire the company for up to $5.8 billion. MRTX was down 5.2% at $57.09 at last glance, and earlier traded as low as $56.62. Since the start of the year, the equity is up 26%.

Analysts downgraded the stock following the news, with JonesTrading and B. Riley cutting their ratings to "hold," while Jefferies adjusted to "neutral." J.P. Morgan Securities added in a price-target hike to $58 from $42, however.

MRTX's options pits are bustling with activity today, too. So far, 5,352 calls and 4,130 puts have been exchanged, which is five times the average daily volume already. The January 2024 50-strike call is the most popular by far, followed by the October 60 put.

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