Onyx Pharmaceuticals Lowered to Neutral at Zacks (ONXX)
Onyx Pharmaceuticals (NASDAQ: ONXX) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research note issued on Friday. They currently have a $88.00 price target on the stock.
Zacks‘ analyst wrote, “Onyx’s fourth quarter loss of $0.49 per share was well below the Zacks Consensus Estimate of a loss of $0.84. Quarterly revenues were $127.9 million, well above the Zacks Consensus Estimate of $108 million. Onyx, which was a one-product company until a year back, has successfully transformed into a multi-product company. With two recent product approvals and Nexavar continuing to perform well, Onyx looks well-positioned. We expect 2013 to be a catalyst-filled year as the company works on expanding the labels of currently marketed products and progresses with the development of other candidates. Kyprolis is off to a strong start and represents significant commercial potential. However, it will be facing competition given the recent approval of Celgene’s Pomalyst. We are moving back to a Neutral recommendation on Onyx. “
A number of other firms have also recently commented on ONXX. Analysts at JMP Securities raised their price target on shares of Onyx Pharmaceuticals from $100.00 to $102.00 in a research note to investors on Friday, February 22nd. Separately, analysts at Bank of America reiterated a “buy” rating on shares of Onyx Pharmaceuticals in a research note to investors on Friday, February 22nd. They now have a $100.00 price target on the stock, up previously from $99.00. Finally, analysts at Barclays Capital cut their price target on shares of Onyx Pharmaceuticals from $97.00 to $93.00 in a research note to investors on Friday, February 22nd. They now have an “overweight” rating on the stock.
Sixteen analysts have rated the stock with a buy rating, two have given an overweight rating, and four have issued a hold rating to the company’s stock. The stock currently has an average rating of “buy” and a consensus target price of $100.88.
Shares of Onyx Pharmaceuticals traded up 2.59% during mid-day trading on Friday, hitting $85.65. Onyx Pharmaceuticals has a one year low of $36.53 and a one year high of $93.18. The stock’s 50-day moving average is currently $76.57. The company’s market cap is $5.741 billion.
Onyx Pharmaceuticals last issued its quarterly earnings data on Thursday, February 21st. The company reported ($0.36) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.76) by $0.40. The company had revenue of $127.90 million for the quarter, compared to the consensus estimate of $113.17 million. During the same quarter in the prior year, the company posted $1.50 earnings per share. The company’s quarterly revenue was down 46.0% on a year-over-year basis. On average, analysts predict that Onyx Pharmaceuticals will post $-2.40 earnings per share for the current fiscal year.
Onyx Pharmaceuticals, Inc. (Onyx) is a biopharmaceutical company. The Company is developing therapies that target the molecular mechanisms that cause cancer.
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The analyst’s view of the positioning of Kyprolis (ONXX) and Pomalyst (CELG) is very naive and uniformed. In fact, as the CEO of Celgene stated and similar view expressed on the 4Q 2012 Onyx conference call by Onyx’s execs, the two drugs are actually complementary. In fact, patients may use both at one point or another. So,it’s not an either/or situation. And, as such one does not threaten the market share or impact sales of the other. Zack’s should find some better analysts or at least some that understand how drugs actually work. If this is the only basis for the Neutral rating they need to go back and do their homework. Or, at least read the transcripts of the conference calls from Celgene and Onyx.