Arena Pharmaceuticals has been upgraded by a market research firm, Zacks, to a ‘buy’ rating from a previously given ‘hold’ rating in a market study published on Tuesday, July 21, 2015. The pharma company has been given a price target of US$4.75 on its stock, which indicate a potential rise of 9.20% from its existing stock price.
According to Zacks, the results for the first quarter of Arena were better than what was expected as the pharmaceutical company reported a loss less than the projections. The improvement in the sales of obesity treatment medication, Belviq, added to this rise. However, the competitiveness in the obesity market is rising as various new treatments such as Saxenda and Contrave have entered into this market.
Furthermore, Belviq has not gained the EU approval till now, whereas both Contrave and Saxenda have been approved sometimes ago. Arena Pharmaceuticals and its partner Eisai are carrying out various promotion activities to drive the market for Belviq. The company is also working on expanding the treatment’s label into several lucrative areas such as smoking cessation.
On the other hand, market experts at Piper Jaffray has given the company’s stock an ‘overweight’ rating and set a price target of US$4.50, in a research report, published on Thursday, July 16, 2015. Whereas, analysts at BMO Capital Markets have set a price target of US$9.00 and reiterated a ‘market perform’ rating on the stock of the pharma company, in a research note, published on Thursday, May 14, 2015.
While, market experts at Needham and Co. have maintained a ‘hold’ rating on the pharma stock, in a research note published on Wednesday, May 13, 2015, the analysts at WallachBeth Capital have lowered their price target from US$8.00 to US$6.00 on the pharma stock and set a ‘buy’ rating on it, in a research note on Tuesday, May 12, 2015.