Cliffs Natural Resources
The good news for Cliffs Natural Resources Inc. (NYSE: CLF) is that it is restarting a mine earlier than expected. Macquarie also raised the stock to Outperform from Neutral on June 10. The firm’s $7.50 price target was considerably higher than the prior $5.10 close.
Shares of Cliffs Natural Resources were trading at $5.35 around noon on Friday, but the weak market left the gain at only 1.2% for a $5.16 close. The consensus price target was $3.38 prior to the call, but this and perhaps other analyst tweaks took the consensus target up to $3.81 by week’s end. The 52-week range is $1.20 to $5.83.
Please note that this Macquarie price target of $7.50 now is the highest analyst price target on Wall Street, and it still implies close to 50%, as long as you know the consensus target is under the current price handily.
Jefferies started Oncobiologics Ltd. (NASDAQ: ONSIU) at Buy on June 7. The price target was set at $7, versus a $5.11 prior close. Jefferies sees this as a platform story, with a pipeline of large opportunity biosimilars like Humira and Avastin. Jefferies said:
The main focus is the development of ONS-3010 which is expected to initiate a Phase 3 in the third quarter of 2016 with data in the first half of 2017. ONS-1045 will be partnered with OUS to fund its development. We expect Oncobiologics to achieve approximately $330 million in U.S. sales by 2025 from sales of ONS-3010 and ONS-1045.
Keep in mind that at the commencement of trading on June 13, the common stock, Series A warrants and the Series B warrants will trade separately on the Nasdaq Global Market under the symbols ONS for the stock and ONSIW and ONSIZ for the warrants.
On news that the Federal Trade Commission (FTC) actually may be in favor of the Walgreens deal, Rite Aid Corp. (NYSE: RAD) shares closed up 3.4% at $7.83 on Friday. S&P Capital IQ reiterated a Buy rating on the stock over the prior weekend, and S&P kept its $9 price target.
Keep in mind that short sellers went to war against Rite Aid in May, and Credit Suisse was positive on Rite Aid earlier this year, even if the Walgreens buyout doesn’t happen. 24/7 Wall St. opined that the buyout price may undervalue Rite Aid by $1 per share or more.
Rite Aid’s would-be buyout price is also $9, but its 52-week range is $5.88 to $9.47.
TETRA Technologies Inc. (NYSE: TTI) is in the oil and gas services sector and known for providing fluids, testing and compression. Wunderlich reiterated its Buy rating on Friday and raised its target price to $10 from $6.
Shares of TETRA Tech closed up 2% at $6.57 on Friday, in a 52-week range of $4.62 to $9.44. The consensus analyst target is $7.86.
Turning Point Brands
Focused on the smokeless and smoking tobacco products, Turning Point Brands Inc. (NYSE: TPB) had a fairly recent initial public offering that priced at $10 a share. The stock took a beating last week, closing down 7% at $8.28 on Friday.
Cowen issued a new Outperform rating and $13 share price on June 6, when shares were just above $10 and the post-IPO range was $9.90 to $12.10. FBR Capital Markets mirrored that analyst call with a $13 price target and Outperform rating.
Now the post-IPO low is $8.14, also from Friday. Turning Point Brands has a post-IPO range of $8.14 to $12.10, and its market cap is just under $150 million. It will release its first ever earnings report on June 15.