(Bloomberg) -- Emboldened by the recent success of riskier bond offerings, the credit market is opening up to more cuspy borrowers, including near-junk rated companies and the first leveraged loan deal in almost a month.Landry’s Inc., a restaurant and casino operator owned by Texas billionaire Tilman Fertitta, is looking to take out a $250 million secured term loan due October 2023. Broadcom Inc. and Ally Financial Inc. are marketing new bonds rated one step above speculative grade, and the high-yield market remains active with an offering from LifePoint Health.It adds up to a credit market that’s gradually willing to take on more risk, after initially only opening up for the highest-quality, investment-grade companies. Record high-grade issuance met by even greater demand, and the success of recent high-yield offerings has helped investor confidence as companies look to shore up liquidity with global lockdowns in effect for the foreseeable future.There are already 11 investment-grade deals in the U.S. market, following eight in Europe. Caterpillar Inc. is among those borrowing in dollars, while Repsol SA was the latest oil major to head to Europe’s debt market for fresh funding. Auto companies are also active, with BMW’s finance unit in the dollar market, while Peugeot maker PSA and Rolls-Royce took out new loans. That’s all chugging along even in what’s traditionally a quieter week ahead of the Easter holiday.“One usually should expect a seasonal slowdown in activity, yet with most people in lockdown, it rather feels like a week of business as usual,” said Armin Peter, global head of debt syndicate at UBS Group AG.U.S.Credit risk is easing and there are 12 deals in the market as of 11:07 a.m. in New York. The high-yield market is starting to get into a rhythm, with LifePoint Health announcing a new offering.Landry’s is holding a lender meeting for its new secured term loan at 2 p.m. in New YorkBroadcom is marketing a new deal along with CaterpillarFor deal updates, click here for the New Issue MonitorCompanies based in the Americas drew $45 billion from existing credit facilities last week to help them weather the coronavirus crisis, a 52% fall from the previous weekFor more, click here for the Credit Daybook AmericasEuropeEight issuers including Sanofi and LafargeHolcim Ltd raised 7.25 billion euros ($7.8 billion) on Monday, with Repsol following BP Plc, Royal Dutch Shell Plc and OMV AG in to the market.Sovereigns Ireland and Slovenia followed Latvia into the euro market after hiring banks for salesMarket participants surveyed by Bloomberg News don’t expect the usual Easter slowdown in activity this year, with borrowers keen to get deals done while they canBlackrock strategists say the outlook for credit has improved due to the unprecedented central bank action to tackle coronavirus, and it sees room for outperformance in corporate debtStill, the ECB’s latest QE bazooka is proving a double-edged sword for the market: companies are flocking to raise new debt, but the supply gut is keeping bond spreads elevatedPeugeot maker PSA is the latest auto-sector name to raise financing, as it signed a 3 billion-euro 12-month deal, adding to an undrawn credit line of the same sizeEngine maker Rolls-Royce got a new 1.5 billion-pound ($1.8 billion) credit line, after drawing down 2.5 billion pounds of revolving facilities last monthAsiaIn Asia, Warren Buffett’s Berkshire Hathaway Inc. is set to join the record bonanza of corporate debt sales with a multi-tranche sale of yen-denominated bonds maturing in as long as 40 years later this week.Berkshire Hathaway’s multi-tranche yen bond is its first sale in the region since September, when it raised 430 billion yen (about $4 billion) across six tranches in the biggest yen offering by a non-Japanese borrowerBerkshire’s sale may be welcome news for institutional investors in Japan desperate for yield and safer credits. The country’s Government Pension Investment Fund said last week it will allocate 25% of its assets into overseas debt while cutting holdings of Japanese bonds. Read more about that hereRepublic of Indonesia is offering a three-part note sale and will use the proceeds to part-fund its Covid-19 relief and recovery effortsThe Markit iTraxx Asia ex-Japan index of credit-default swaps declined about 3 basis points Monday. Meanwhile Asian investment-grade dollar bond spreads were little changed after widening for a seventh straight week through Friday, according to a Bloomberg Barclays indexTrading volumes were light and liquidity in the market appears thinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
“To say the world has completely changed over the last 1-2 months in the wake of the COVID-19 pandemic is an understatement,” says Goldman Sachs’ Bonnie Herzog in a recent note to clients. It is impossible to disagree. Wall Street has been grappling with the implications, as stock prices and valuations have tumbled due to the increased uncertainty in the face of COVID-19’s long term impact.Herzog has been assessing the current health of the beverage and tobacco sector, and in addition to the “unprecedented uncertainty” regarding the broader economy, is worried of other possible developments.“We are also concerned about the ripple effect on broader consumer demand as concerns about health considerations & social distancing give way to the long-term effects on the job market, wages, consumer behavior & consumer spending,” Herzog said.Having said that, the analyst identifies a number of names in the beverage sector that are well setup to outperform as the year progresses.We ran three of Goldman Sachs' top picks through TipRanks’ database to further gauge Street sentiment towards them. As it happens, all are Buy rated, and what’s more, the analysts forecast all to have at least 25% upside in the year ahead. Let’s take a closer look.Boston Beer Company (SAM)Let’s start off with one of 2020’s sturdier performers in the face of COVID-19. Although the Boston Beer Company’s share price is down by 5% year-to-date, it has fared significantly better than the overall market, considering the S&P 500’s 20% decline.There are a couple of reasons, according to Herzog, why the company has proved resilient. SAM’s relative lack of exposure to the on-premise channel, compared to its peers, means it has taken less of a hit from the nationwide closure of bars and restaurants. 11% of SAM’s business is on premises, compared to the industry average of 16%. Furthermore, the reduction of on-premise sells is set to be countered by a strong retail/take home trend.The second positive driver for SAM is due to it being “advantageously levered” to what Herzog claims is “one of the few ‘big’ growth opportunities in alcoholic beverages,” - hard seltzers. In its brand Truly, SAM has the No.2 position in the hard seltzer market, which the analyst believes, it is not about to relinquish any time soon.The trend, Herzog argues, is only likely to grow. The analsyt said, “We believe the hard seltzer category is here to stay and our analysis suggests category volumes could expand 2-3x by 2023 to become ~10% of total beer consumption in the U.S., up from ~3.5% in 2019. As a strong No.2, we believe Truly could capture a signiﬁcant share of this growth and our sensitivity analysis suggests every incremental 6% step-up in Truly shipment volume growth boosts SAM’s net rev growth by +340bps.”To this end, Herzog resumes coverage of SAM with a Buy rating along with a $415 price target. The upside from current levels is 13%. (To watch Herzog’s track record, click here)Turning now to the rest of the Street, SAM has a Strong Buy consensus rating, based on 7 Buys and 2 Holds. At $450, the average price target is set to provide upside of 24%, should it be met in the year ahead. (See SAM stock analysis on TipRanks)Constellation Brands Inc (STZ)Unlike SAM, Constellation Brands can’t boast of beating the market so far in 2020. The largest beer import company in the US is down by 30% since the turn of year. But like SAM, Herzog sees multiple growth drivers for Constellation, calling it “one of the most attractive stocks across consumer staples and among the rare ones levered to growth.”Herzog argues STZ’s valuation has been unfairly punished due to the coronavirus’s impact on on-premise business (roughly 15% of the company’s beer sales) and an overreaction to its exposure to California, where stay-at-home measures have been implemented since mid-March, and, therefore, impacting sales.But There is another problem that has just reared its ugly head for Constellation. The company owns Grupo Modelo’s - the maker of Corona beer – U.S. rights. Unlike in the U.S., beer is not considered an essential business in Mexico and Anheuser-Bush InBev, who own Modelo’s rest of the world’s rights, temporarily shut down its Mexican brewing facilities on Sunday April 5th, to help curb the spread of the virus. Constellation Brands’ CEO Bill Newlands has said the company’s Mexico plants are still operating and it has 70 days of inventory to guarantee minimal disruption, but with uncertainty currently in the air, it will be interesting to see if the plants remain open for much longer.Nevertheless, Herzog is confident in Constellation’s long-term growth drivers. The analyst said, “We believe STZ can deliver on its growth objectives without signiﬁcant degradation to its beer operating margin, which at ~39% is already very high and best-in-class. We believe, like the best CPG operators out there, STZ has multiple levers to pull to drive top-line growth while protecting proﬁts/margins, and we expect this to happen as the company “leans into change” and leads on growth.”Therefore, coverage on Constellation is resumed, with a Buy rating and a $165 price target, implying possible upside of 17%.Overall, 10 Buys and 6 Hold ratings published over the last 3 months present STZ with a Moderate Buy consensus rating. The average price target comes in at $192.07, and suggests possible upside of 37%. (See Constellation Brands stock analysis on TipRanks)Monster Beverage Corp (MNST)The last name on our list nestles somewhere between our two previous companies. With a 15% year-to-date drop, according to Herzog, the manufacturer of energy drinks including Monster Energy, Relentless and Burn is well set up to reward investors. “Simply put,” Herzog says, “We see recent share price pressure as a buying opportunity.”Herzog believes “strong customer loyalty & low household penetration” are reasons why the energy category “will remain resilient in the current climate.”And according to optimistic comments from the analyst’s convenience store retailer contacts, concerns about signiﬁcant less demand across the category due to COVID-19’s impact on lower traffic, are “misplaced.” Additionally, energy drink consumers are likely to step up purchases in other channels and load up on pantry items.“In short,” Herzog concludes “we think this is being largely disregarded by the market, with shares trading at a FY21 P/E multiple of 23.5x, an -12% discount vs. MNST 1-year historical average multiple of 26.5x and a -19% discount vs. MNST’s 3-year historical average multiple of 28.9x. Most importantly, MNST’s current valuation only implies an 85% premium vs. the S&P 500 (slightly below MNST’s 5-year average premium of 86%) despite limited downside risk to growth, improving margins & an increasingly rational competitive environment.”Bottom line, what does it mean for investors? Herzog resumes coverage with a Buy rating and a $65 price target. Expects returns in the shape of 20%, should the analyst’s thesis play out in the coming months.Looking at the consensus breakdown, 7 Buys, 3 Holds and 1 Sell rating coalesce to a Moderate Buy consensus rating for the energy drink manufacturer. Investors will take home a 19% gain, should the average price target of $67.33, be met over the next year. (See Monster Beverage stock analysis on TipRanks)To find good ideas for beverage stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Dr. Ellice, an emergency room doctor in Los Angelos, joins Yahoo Finance’s Brian Sozzi and Alexis Christoforous to discuss how her call to help brought ID.me and Slack together to create ways for medical professionals to share information in real time amid the coronavirus crisis.
Matt Orton, Portfolio Strategist at Carillon Tower Advisers, joins Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Heidi Chung to discuss how the markets are being impacted by the coronavirus outbreak.
(Bloomberg) -- Jamie Dimon said the coronavirus pandemic will lead to a major economic downturn and stress mirroring the meltdown that nearly brought down the U.S. financial system in 2008.“At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008,” the chief executive officer of JPMorgan Chase & Co. said Monday in his annual letter to shareholders. “Our bank cannot be immune to the effects of this kind of stress.”The 23-page letter, his shortest since 2008, came less than a week after Dimon told staff he’d returned to work after undergoing emergency heart surgery. It was his first public commentary about the coronavirus since the bank’s investor day on Feb. 25. At the time, the outbreak still seemed a distant threat, with fewer than 60 cases in the U.S. and none in New York.Dimon, the only current CEO who steered a major U.S. bank through the financial crisis, said JPMorgan’s earnings will be “down meaningfully” this year, though the bank is “unlikely” to cut its dividend. Such a move would only result from “extreme prudence,” he said, adding that JPMorgan will give more details on the impact when it reports first-quarter earnings later this month.The 64-year-old CEO outlined initiatives his bank is taking to support employees, businesses and the community, but refrained from offering long opinions about public policy that marked previous missives.Read more: What to Know About Recessions as World Heads Into One: QuickTakeHe said 180,000, or about 70%, of the firm’s employees are working from home, and the bank is giving payments of $1,000 to those whose jobs don’t allow them to work remotely.JPMorgan has been waiving fees for some loans, allowing customers to defer payments on mortgages and auto loans, and removing minimum payment requirements on credit cards. It’s also extended $950 million in new loans to small businesses over the past 60 days, and is planning to lend an additional $150 billion to clients across the world.Regulatory ReviewAfter the crisis, “we should use the opportunity to closely review the economic response and determine whether any additional regulatory changes are warranted to improve our financial and economic system,” Dimon wrote. “There will be a time and place for that -- but not now.”Dimon has become a spokesman for Wall Street thanks to his frequent public appearances, outspoken nature and nearly 15-year tenure at the biggest and most profitable bank in America. His absence while he recovered from surgery was felt across the industry as policy makers grappled with dire warnings about the economic effects of the pandemic and governments stepped up efforts to keep millions of people at home to stem the spread of the highly contagious virus.Dimon was more pessimistic about prospects for the economy than some industry figures were when the scale of the crisis was first becoming clear. A month ago, as stock markets were sliding, former Goldman Sachs Group Inc. CEO Lloyd Blankfein said in a tweet to “expect quick recovery when health threat recedes.” He said the economy “will avoid systemic damage” that takes years to work through.‘Forever Lost’Dimon said JPMorgan has been working closely with the government during the crisis, but the bank “will not request any regulatory relief” for itself. Still, regulators could change capital and liquidity requirements to help more capital flow through the system, he said.“Some rules can improperly prevent healthy, well-capitalized banks from lending freely in times of stress,” Dimon said. “This can hurt customers as the crisis deepens. Leaving high-quality, available liquidity undeployed in times of need is an opportunity forever lost.”He applauded recent actions by U.S. Department of Treasury and the Federal Reserve, which he said helped mitigate the economic impact of the virus.Shares of JPMorgan rose 6.3% to $89.36 at 9:48 a.m. in New York, more than the 4.1% gain in the S&P 500 index, which rallied after virus hot spots New York, Italy and Spain posted improvements in death rates over the weekend. JPMorgan’s stock has tumbled 36% this year, less than the 43% slump in the KBW index of bank stocks.Until last year, Dimon’s annual missives had gradually gotten longer, more than tripling in length since he took over as CEO at the end of 2005. He writes the letters himself, but drafts are reviewed and edited by the bank’s legal, accounting, compliance, public-relations and government-affairs teams before they’re published.Other HighlightsJPMorgan has been stress-testing the impact that adverse scenarios, such as a jump in unemployment to 10% and a 50% drop in the stock market, would have on the bank. The firm’s $48 billion in pretax earnings last year would enable it to remain profitable even if revenue fell 20% and credit costs rise $20 billion from 2019, he said.Companies have drawn more than $50 billion of their revolvers -- more than they did during the global financial crisis -- to shore up liquidity, Dimon said. In March, the firm provided more than $25 billion of new credit extensions to companies that requested it.Dimon said people could return to work more quickly if governments made tests widely available to determine who has recovered from the disease. “The country was not adequately prepared for this pandemic,” he said. “Done right, a disciplined transition would maximize the health of Americans and minimize the time, extent and suffering caused by the economic downturn.”(Updates with share price in 14th paragraph, bullet points at end.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Vir's shares jumped 35% before the bell, while GSK was up about 1%. Drugmakers across the globe are rushing to develop a treatment or vaccine for the fast-spreading coronavirus that has killed over 68,400 people globally. There are currently no approved treatments for the disease.
Homeowners hurt by COVID-19 can delay mortgage payments, but some say they're anxious and confused about the real cost
Brokerage Credit Suisse downgraded Zoom Video Communications Inc's stock to "underperform" from "neutral". "While implied new customer growth may seem undemanding compared to recently disclosed 20x participant growth, we expect much of the recent surge will prove ephemeral, and/or comes from free users or education, which are very difficult to monetize," Credit Suisse analysts wrote in a note. Last week, at least two U.S. state attorneys had sought information from Zoom following multiple reports that questioned its privacy and security.
Shares of Tenneco (TEN), a manufacturer of automotive products and solutions, are spiking over 16% in Monday's pre-market trading. The move comes after hedge fund guru Carl Ichan disclosed acquiring over 3.48 million TEN shares on April 1.This is a volatile time for the stock. Shares plunged 21% on Friday after Tenneco withdrew its first-quarter and full-year guidance due to Covid-19 related uncertainty and suspended or reduced operations across several regions. In a press release, CEO Brian Kesseler commented: “The continuing near-term deterioration in demand in our end markets necessitates further difficult decisions.”As a result, JP Morgan’s Ryan Brinkman downgraded the stock from buy to hold- and dropped his price target from $7 to $5. The analyst stated: “Our implied blended average EV/EBITDA target multiple is approximately ~5.5x on our 2021 estimates, below the sector average currently.”Indeed, the Street is displaying a more cautious sentiment than Icahn when it comes to Tenneco stock, with a Hold consensus based on the last three months of analyst ratings. Meanwhile the average analyst price target suggests 147% upside potential from current levels. (See TEN’s stock analysis on TipRanks)However, despite downgrading the stock, Brinkman does perhaps offer some insight into Icahn’s stock purchase, writing that TEN shows “a clear and compelling sum-of-parts valuation case (management intends to separate the businesses in mid 2020), which suggests material upside to valuation even in the case of conservatively valuing the purportedly structurally challenged Powertrain Technologies business at a lower multiple than any other supplier we cover.”Related News: Gilead CEO Provides Update For Potential Covid-19 Medicine, Remdesivir Billionaire Ackman’s Pershing Fund Gains 11% in March on Coronavirus Recovery Bet Tesla Sees Solid Quarterly Deliveries Despite Global Coronavirus Pandemic More recent articles from Smarter Analyst: * “Our Bank Cannot be Immune”, Says JP Morgan’s Jamie Dimon In Annual Shareholder Letter * Broadcom Dividend Is Safe Says Top Analyst, CFO Notes Recovery in Chinese Demand * Acceleron Receives Thumbs Up From Street On FDA Reblozyl Label Expansion * Apple Donating 1 Million Face Masks Per Week
Arvind, known by his first name, headed the Big Blue's fast-growing cloud business before his elevation as chief executive officer in late-January. As chief technology officer of Bank of America, Boville was responsible for building and running the second largest U.S. bank's cloud services. IBM said in November it had created a financial services-specific cloud technology in collaboration with Bank of America.
The payback, which will apply to 18 million policies issued by Allstate and its Esurance and Encompass units, follows a data analysis by the insurer that showed mileage is down between 35% and 50% in most states, Allstate Chief Executive Officer Tom Wilson said during a call with reporters on Monday. The analysis, based on data that Allstate collects from tracking products that some customers agree to use in exchange for discounts, and other sources, showed no difference between states that had "shelter in place" orders in effect and those that did not, Wilson said.
It’s a new week, and market watchers are bracing themselves for whatever comes their way. Ahead of the opening bell on Monday U.S. stock futures are up, some welcome news after stocks rounded out the week in the red. The uptick comes as Italy, Spain and New York report death rates are slowing, giving investors a sliver of hope that some headway is being made in the battle against COVID-19.For those feeling a sense of déjà vu, you’re not alone. Oanda’s senior market analyst for Asia Pacific, Jeffrey Halley, thinks the most recent bump might only be temporary, stating that the disappointing March jobs report from last week implies COVID-19 is wreaking “almost unimaginable havoc on the world's economy.”Having said that, while the broader market seesaws between the red and the green, Wall Street pros believe a few tickers are positioned for substantial gains, pointing specifically to healthcare companies taking on the deadly virus.Using TipRanks’ database, we pinpointed three healthcare stocks fighting COVID-19 that are primed for significant growth. In addition, it revealed what the analyst community has to say about each of the Buy-rated names. Here’s the lowdown.Kiniksa Pharmaceuticals Ltd. (KNSA)Through its innovative technology designed to modulate immunological signaling pathways, Kiniksa wants to improve the lives of patients battling diseases with significant unmet medical need. In stark contrast to the broader market, 2020 has been good to this name, with it up 62% year-to-date. Given the company's update on its COVID-19 treatment, the analysts believe there’s more good news to come.KNSA recently reported that its anti-GM-CSFRα antibody, mavrilimumab, had been used to treat six severe COVID-19 pneumonia and hyperinflammation patients in a study conducted by Professor Lorenzo Dagna at the San Raffaele University in Italy. To say that the results were promising is an understatement. All of the patients saw their fevers resolved and an improvement in oxygenation within 1-3 days. On top of this, none of the patients needed mechanical ventilation and half were able to be discharged within 5 days.Weighing in for Wedbush, analyst David Nierengarten points out that COVID-19 causes similar symptoms to other toxicities addressed by mavrilimumab. Cell therapies are sometimes impacted by serious adverse events like cytokine release syndrome (CRS) and neurologic toxicity that can prolong hospital stays, increase treatment costs and even lead to death, but KNSA’s antibody has been shown to reduce the occurrence of these events. This is encouraging as evidence suggests COVID-19 patients have higher levels of pro-inflammatory cytokines that can cause CRS.Commenting on mavrilimumab, Nierengarten said, “We are intrigued by these early developments and look forward to a possible Phase 2/3 clinical study in the future...While we do not currently value mavrilimumab in COVID-19, we do see these results as a broad validation of the anti-GM-CSFRα antibody's power in reducing severe inflammation.”It should come as no surprise, then, that Nierengarten maintained an Outperform rating as well as a $30 price target. Should this target be met, a twelve-month gain of 68% could be in the cards. (To watch Nierengarten’s track record, click here)All in all, other analysts are on the same page. With 100% Street support, or 3 Buy recommendations to be exact, the message is clear: KNSA is a Strong Buy. At $30, the average price target matches Nierengarten’s forecast. (See Kiniksa stock analysis on TipRanks)CytoDyn, Inc. (CYDY)CytoDyn is primarily focused on developing Leronlimab (PRO 140), its once a week CCR5 antagonist-based injection to target the CCR5 receptor, which is seen in many diseases like HIV, GVHD, NASH, stroke recovery, multiple sclerosis, Parkinson's disease and metastatic cancer. Partly due to the candidate’s possible use in treating COVID-19, shares have soared 179% year-to-date.The company has recently announced that eight out of ten patients with severe cases of COVID-19 demonstrated a significant improvement in immunologic biomarkers, especially cytokines (including the key inflammation driver IL-6), and some normalization of the CD4/CD8 ratio. The result implies that the therapy was able to restore immune function and mitigate the cytokine storm, which are associated with patient improvement.Explaining the implications, H.C. Wainwright analyst Yi Chen noted, This conclusion was reaffirmed after noted, “In our view, if leronlimab can consistently demonstrate in the Phase 2b/3 trial that it can help severely ill patients recover from pulmonary inflammation that drives mortality and the need for ventilators and prevent acute respiratory distress syndrome (ARDS), the FDA may grant accelerated approval for this potentially lifesaving drug due to the escalating cases and deaths due to COVID-19 in the U.S., particularly in New York State. In the wake of this update, we have added potential sales of leronlimab as COVID-19 therapy to our valuation, with a 35% probability of approval.”If that wasn’t promising enough, CYDY plans to enroll patients in both the mild-to-moderately ill and severely ill protocols quickly under the same IND that was provided with a “safe to proceed” letter from the FDA.Given everything CYDY has going for it, it makes sense that Chen decided to stay with the bulls. Along with a Buy rating, the five-star analyst bumped up the price target from $1.50 to $3. This suggests that shares could move 8% higher in the next year. (To watch Chen’s track record, click here)Looking at the consensus breakdown, it has been quiet when it comes to other analyst activity. Chen’s rating is the only recent review, and thus the consensus rating is a Moderate Buy. Unsurprisingly, investor sentiment is positive, with individual portfolios in the TipRanks database showing a net increase in CYDY. (See CytoDyn stock analysis on TipRanks)BioNTech SE (BNTX)The last healthcare name on our list wants to provide cancer patients with the ability to individualize treatment based on the specific genetic features of their tumors. Recently, BioNTech has garnered positive attention thanks to its efforts to develop a COVID-19 vaccine, as demonstrated by its 56% year-to-date rise.Writing for Canaccord, analyst Arlinda Lee has been impressed by BNTX’s collaboration with Pfizer and Fosun in China to develop a vaccine candidate against COVID-19. Kicking off its research program in January, the company designed its mRNA vaccine, BNT162, to induce immunity and prevention of the virus. This candidate is the first to be born out of Project Lightspeed, an accelerated development program featuring BNTX's mRNA infectious disease platform and GMP manufacturing infrastructure, which can potentially prevent and treat COVID-19.This prompted Lee to comment, “In our view, the speed to instigate the COVID program and bring a candidate to clinic underscores BNTX’s scientific expertise and the rapidity and efficiency of its platform.”That being said, Lee believes BNTX’s growth story goes behind this program. Its most advanced candidate, BNT111, is a vaccine designed with antigens commonly expressed in melanomas. With complete Phase 1 data slated for release in the second quarter and a pivotal trial set to start in 2020, this candidate could drive significant upside.BNTX is also working with Genentech to develop a personalized cancer vaccine RO198457 (BNT122), with ongoing trials in melanoma and solid tumors. Data readouts from these trials could serve as key catalysts for the company as well.Bearing this in mind, Lee left a bullish call on the stock as well as gave the price target a boost, increasing the figure from $22 to $60. At this new target, the upside potential amounts to 14%. (To watch Lee’s track record, click here)Turning now to the rest of the Street, opinions are split evenly down the middle. 3 Buys and 3 Holds assigned in the last three months add up to a Moderate Buy analyst consensus. The $38.40 average price target implies downside potential of 27%, but this could change should other analysts update their models to account for the recent share price appreciation. (See BioNTech stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Saudi Arabia and Russia are close to a deal on oil output cuts to reduce a global glut, a top Russian oil negotiator said on Monday, but details such as how to share out production curbs remained unclear ahead of talks planned for later this week. A supply deal between OPEC, Russia and other producers, a group known as OPEC+, that had propped up oil prices for three years collapsed in March, while the coronavirus hammered demand. Riyadh and Moscow blamed each other for the failure and launched a battle for market share, sending oil prices to their lowest in two decades that has strained budgets of oil producing nations and hurt higher-cost producers in the United States.