Broker upgrades
MAYNE PHARMA GROUP LIMITED ((MYX)) Upgrade to Buy from Hold by Canaccord Genuity and Upgrade to Overweight from Market Weight by Wilsons.B/H/S: 0/0/0
Canaccord Genuity observes positive trends across all segments are occurring for Mayne Pharma, with the business enjoying a "healthy and deserved re-rate over the last few months". New systems are in place to create structural growth.
A strong pipeline of product additions, combined with the disintermediation story, mitigates the risks in specialty and generics, the broker adds.
Rating is upgraded to Buy from Hold and the target lifted to $6.69 from $3.80. Expansion of the buyback also signals an improved stance.
Wilsons is finally satisfied that changes in accounting policies, data tracking and market approach by the new management team at Mayne Pharma are becoming sticky and the first half results have revealed tangible evidence of their efforts.
The positive view on the stock is being driven by Nextstellis, which for the first time since launch beat forecasts. This is a catalyst to upgrade to Overweight from Market Weight.
The broker assesses the material turnaround of the business is only getting started and it is time to buy. Target is raised to $7.38 from $5.50.
(20min delay)