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Fly News Breaks for March 27, 2017
CLVS, AZN, TSRO
Mar 27, 2017 | 06:09 EDT
Jefferies analyst Eun Yang raised her price target for Tesaro (TSRO) to $124 from $80 based on her estimated fundamental net present and takeout value, but the analyst keeps a Hold rating on the shares. The stock closed Friday up $6.38 to $160. Yang says her firm's poll of 29 oncologists indicates that all PARP inhibitors are more similar versus dissimilar. The results show "no clear differentiation" of Tesaro's Niraparib, Yang tells investors in a research note. Following AstraZeneca's (AZN) olaparib Phase 3 data on March 14, Tesaro's attractiveness as an acquisition target has diminished, Yang argues. She believes the odds of a near-term takeout before Clovis Oncology (CLVS) reports data in 2017 are lower versus what the market assigns. The analyst values Tesaro at $80 per share on a fundamental basis. If Tesaro is acquired, Yang contends, the buyout price is unlikely to be much higher than the current price.