Daily Update - Jan 10, 2023
Selected highlights of the day
By: Matthew Otto
Paya gets challenged in court
Several law firms have launched an investigation to evaluate whether Paya Holdings and its board of directors acted in the best interest of shareholders when selling the firm for $9.75 per share to Nuvei Corporation. Specifically, this inquiry will assess if proper procedures were taken with regards to obtaining a fair price; determining if investors may have been underpaid.
- Mark Palmer of BTIG reduced his target from “Buy” to “Neutral”
- Timothy Chiodo of Credit Suisse lowered his target to $9.75, also moving the rating from “Outperform” to “Neutral”.
- Joseph Vafi at Canaccord Genuity cut both ratings and targets by similar margins – decreasing his recommendation from “Buy”to “Hold”, as well as reducing his value estimation from $10 to $9 .75.
- Raymond James’ John Davis concluded this downward trend by revising his assessment for PAYA from Outperform to Market Perform.
AliBaba warms up relationship with Chinese government
A fruitful partnership between the Chinese e-commerce giant Alibaba Group Holding and Hangzhou local government is underway to bolster growth in the online platform economy, according to a report by Zhejiang Daily. The move signals thawing relations following two years of scrutiny from regulators – which could open new doors for China’s tech industry if successful.
- Citigroup analyst Alicia Yap has praised the agreement with a ‘Buy’ rating, increasing her price target on shares from $144 to $160 accordingly.
Armyt management is challenged in court
Law firm Halper Sadeh is exploring the fairness of Amryt Pharma sale to Chiesi Farmaceutici S.p.A., which includes an initial cash payment and possible additional Contingent Value Rights contingent on certain product milestones being met . The investigation will focus on whether Amryt’s board fulfilled their fiduciary responsibilities by obtaining fair value for shareholders, assessing if Chiesi underpaid for the company, and providing all essential information about this transaction.
- Maxim Group’s Jason McCarthy reduced the rating to Hold
- Cantor Fitzgerald’s Brandon Folkes lowered his price target by more than 40% from $25 to $14.75.
- Canaccord Genuity analyst Edward Nash also decreased his recommendation from Buy to Hold and reduced his stock forecast by two dollars from $19 to $17.
Karyopharm Therapeutics is got downgraded by Wainwright and Leerink
- HC Wainwright & Co. analyst Edward White has pulled his price target down from $18 to $16, while maintaining a Buy rating
- SVB Leerink’s Jonathan Chang followed suit by lowering his mark to Market Perform level, giving it a revised assertion of just $5 per share, down from already low $6.
Karyopharm Therapeutics has announced their Fourth Quarter and Full Year 2022 revenue projections
Total revenue expected to be around $157.7 million and U.S XPOVIO® (selinexor) Net Product Revenue projected at approximately $120 Million – respectively meeting the company’s expectations for this financial year . In addition to these positive developments , Karyopheum is focusing on continuing development of selinexor as a potentially viable treatment in women suffering from advanced or recurrent TP53 wild-type endometrial cancer through an exploratory subgroup analysis that continues yielding promising results .The organization also plans to initiate a pivotal Phase 3 study for front line myelofibrosis by early 2023 alongside Foundation Medicine which will develop accompanying diagnostics tools to aid in further research into potential treatments using Selinexor therapy.
Mirum Pharmaceuticals see stock forecasts negative adjustment
- Steven Seedhouse, analyst at Raymond James, maintained a strong buy but made an adjustment of $4 down to reach his new mark of $84.
- Mani Foroohar from SVB Leerink lowered his outlook by more than 20%, placing it at $39 (down from $50) while still maintaining an Outperform rating for Mirum’s stock.
Mirum has had preliminary unaudited LIVMARLI 2022 net revenue totaling $76 million. This amount includes an estimated fourth quarter product sales of $27 million and international sales through partner market supply orders making up nearly one-fifth at $5 million. The company is poised to make further strides in 2023 as it launches its innovative drug, LIVMALI ALGS into the global markets throughout the year. As of December 31st Mirum boasted a strong financial position with assets that included approximately $252million dollars cash equivalents and investments combined.
Zoom stock had a rocky few days
- Terry Tillman of Truist downgraded his rating from Buy to Hold while slashing his price target in half – from $65 to just $28.
- Barclays, Raimo Lenschow kept his Overweight rating but still lowered the price target from $46 to $36.
- Yesterday Piper Sandler Brent Bracelin’s followed suit by maintaining an Overweight stance on ZoomInfo yet decreasing previous forecast from $50 $32.