Jefferies cuts Intercept target, asks if sentiment has hit bottom
In an intraday research note titled "Where do we go from here? Has sentiment basically hit bottom?," Jefferies analyst Michael Yee cut his price target for Intercept Pharmaceuticals to $135 from $275 and keeps a Buy rating on the name. The stock in midday trading is up 59c to $62.18. After recent events, the risk/benefit is still in favor of Ocaliva, Yee tells investors. He admits, however, that there is a lack of visibility and catalysts over the next six months. The analyst views the shares as attractive for investors with a 12-plus month timeframe ahead of the Phase III nonalcoholic steatohepatitis data in 2019. Investor sentiment is already "very negative," Yee argues. He believes shares already reflect "very negative scenarios," like NASH going away or Ocaliva's label receiving a black box warning and negatively impacting primary biliary cholangitis sales.