Prudential Ups Onyx Pharma to Overweight
Prudential upgraded Onyx Pharmaceuticals (ONXX) to overweight from neutral, explaining that the shares have fallen to attractive levels.
Analyst Jason Zhang says imminent news flow after the annual meeting of American Society of Clinical Oncology (ASCO) should be positive to shareholders. He notes that Onyx shares began 2006 in the $30-range and are now near $20. But during this period, the company has made significant progress in successfully launching Nexavar and reporting $25 million in first quarter sales, above Street expectations. He ties recent weakness in the stock to concerns about a Nexavar competitor, and thinks any further downside risk is limited.