Stock Insights: HMS, Par Pharmaceutical, Research In Motion, PHH May 30th
HMS Holdings Corp. (NASDAQ:HMSY): Oppenheimer believes that the most likely outcome of the Supreme Court’s evaluation of the healthcare law is that the court will strike down the individual mandate, guaranteed issuance, and community rating. The firm expects HMS to rally if this is the result, but Oppenheimer sees little risk to the stock if the bill is struck down entirely. The firm maintains an Outperform rating on the stock.
Par Pharmaceutical Companies Inc. (NYSE:PRX): Goldman said the ruling against Par Pharmaceutical in its litigation with Pronova regarding patents covering Lovaza eliminates a key upside opportunity. The firm said the extent of the impact on growth is unclear at this point and maintains its Neutral rating. Leerink lowered its estimates for Par Pharmaceutical after being surprised by the unfavorable decision for Par and Teva in the Lovaza patent dispute. The firm estimates Par would have captured 40c-55c of earnings from generic Lovaza for a full year and lowered its price target range for shares to $43-$44 from $48. However, Leerink keeps an Outperform rating on Par Pharmaceutical shares.
Research In Motion Limited (NASDAQ:RIMM): ThinkEquity reduced its target on Research In Motion after the company said that it expects to report an operating loss for the May quarter, missing the consensus EPS estimate by a wide margin. The firm was surprised by the magnitude of the miss and believes that things may get worse for the company before they get better. It maintains a Hold rating on the shares.
PHH Corporation (NYSE:PHH): FBR Capital believes PHH Corp. should outperform given higher origination expectations from the Mortgage Bankers Association combined with headwinds for banks. Shares are Outperform rated with a $23 price target.
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