Four companies in the healthcare and pharmaceuticals sectors posted mixed results that left analysts at JMP Securities mostly feeling good.
Adeptus Health Inc's ADPT closed Friday up nearly 2 percent on strong quarterly results.
JMP analyst Peter L. Martin expects Adeptus shares to soon fall back in the face of a potential offering of stock from its
largest shareholder and private equity sponsor Sterling Partners.
Martin, who maintained an Outperform rating on Adeptus and boosted his target to 10 percent to $44, said the potential offering could make "an ideal entry point" for investors.
Adeptus will likely exceed expectations given its pace for opening new hospitals and the opportunities for free-standing emergency departments, according to Martin.
Vanda Pharmaceuticals Inc. VNDA closed Friday up 1 percent at $11.43 after posting results that missed expectations along with an upbeat outlook.
JMP's Jason N. Butler maintained an Outperform rating and $30 target.
Butler cited potential for the company's recently launched Hetlioz sleep disorder drug as well as the pending rollout of its Fanapt anti-psychotic treatment.
Select Medical Holdings Corporation SEM missed quarterly expectations and closed down Friday at $13.47, off nearly 4 percent.
Martin maintained an Underperform rating on Select along with an $11 target. Select's recent changes in its long-term care hospitals' policy will produce "a significant headwind to profitability," Martin said.
Ariad Pharmaceuticals, Inc. ARIA closed Friday at $8.06, up nearly 11 percent after posting better-than-expected fourth-quarter results.
JMP's Michael G. King maintained an Outperform rating and $8 target on Ariad, citing recent performance and noting the development-stage drug company, has sufficient cash to carry it through 2016.
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