Brokers Issue Upgrades or Downgrades on These Stocks in January
Besides being obligated to pay a $250 million break-up fee to Eli Lilly, Amylin Pharma (NASDAQ:AMLN) was (NYSE:LLY is also required to pay $1.2 billion in future royalties. The unpaid obligation will accrue at a 9.5% interest rate, while the repayment of this obligation will occur in the form of 15% sales royalties. Basically Lilly is allowing Amylin to pay in installments as it buys back Lilly’s share of the partnership for about $1.5 billion. Additional payments could be necessary in the longer term, as well. If a once-monthly formulation makes it to market, Amylin will owe Lilly a $150 million milestone, plus 20% of any milestones or upfronts tied to partnering these drugs. This company’s rating was downgraded by MKM Partners from Neutral to Sell and changed its price target to $8.5.
An investment company with interests in gaming and tourism, Ralcorp Holdings (NYSE:RAH), showed the most increase in two months, climbing 5.3 percent to 4 rand. Sun International Ltd. has offered 4.22 rand per share for the rest of the shares in Real Africa Holdings Ltd. that it doesn’t already own. This company’s rating by BB&T Capital Mkts has been downgraded from Buy to Hold.
Estimated, unaudited product revenues for Dexcom (NASDAQ:DXCM) was reported by Chief Executive Officer Terry Gregg: of approximately $20.8 million for the fourth quarter of 2011, up approximately 25% sequentially from the prior quarter and up approximately 53% from the fourth quarter of 2010, with estimated, unaudited product revenue for fiscal year 2011 at approximately $65.8 million, up 64% from fiscal year 2010. Mr. Gregg will also provide an estimate for DexCom’s fiscal year 2012 product revenue of $85.0 million – $92.0 million. This company’s rating has been downgraded by MLV & Co from Buy to Hold and changed its price target to $9.
A third quarter profit of $143.4 million for Huntington Banc (NASDAQ:HBAN) was reportedl this is up from $100.9 million a year earlier. A regional bank, its loan-loss provisions fell to $43.6 million from $119.2 million a year earlier. Helped by 5.3% growth in consumer loans, its total loans and leases grew 4% from the prior year. Huntington’s rating was downgraded by Stifel Nicolaus from Buy to Hold.
The target price for T. Rowe Price (NASDAQ:TROW) has been increased by analysts on average to $58.33 to $57.81, but at the same time Ticonderoga downgraded its rating on TRowe from Buy to Neutral.
SandRidge Mississippian Trust II, a unit of SandRidge Permian Trust (NYSE:PER) will offer 25 million common units for trading under the proposed symbol of SDR on the New York Stock Exchange. SandRidge owns oil and gas production in northern Oklahoma and southern Kansas, and the offer is filed to raise up to $604 million. Robert W. Baird’s rating on this company was downgraded its from Outperform to Neutral and its price target was changed to $22.
Urban Outfitters (NASDAQ:URBN) is still getting punished following yesterday’s news that it’s replacing its CEO. Urban’s rating has been downgraded by Robert W. Baird from Outperform to Neutral and its price target changed from $34 to $28.
Southwestern Energy‘s (NYSE:SWN) rating has been downgraded by Robert W. Baird from Outperform to Neutral and its price target changed from $45 to $39.