Treasure Chest | Jan 25 2013
By Rudi Filapek-Vandyck
Analysts are pointing out this morning, local biotech Pharmaxis is awaiting a review of its new drug application for Bronchitol use in cystic fibrosis sufferers of 6 years and higher in age. An announcement/decision by the US Pulmonary-Allergy Drugs Advisory Committee (PADAC) is scheduled for Wednesday, 30 January (US time) which will be Thursday, January 31 in Australia.
The importance of the event is illustrated by preliminary statements from Credit Suisse and Deutsche Bank this morning, indicating a positive ruling will lead to a valuation increase of respectively 23c and 28c. This translates into a potential valuation boost of at least 15% – all else being equal.
For more information see today's Australian Broker Call Report on the FNArena website or Stock Analysis.
In addition, Morgan Stanley has issued a few "Research Tactical Ideas" today. Two are positive, one negative.
First idea is that Downer EDI ((EDI)) shares are likely to receive a boost from a positive outlook to be issued together with the upcoming interim report in February. It is for this reason Morgan Stanley thinks the shares will be higher in 30 days' time.
Second idea is that Flight Centre ((FLT)) shares will be higher in 60 days from today. This projection is also based upon a positive results release in February.
Third idea is that Toll Holdings ((TOL)) may well meet market expectations with its own report next month, but the quality shall be low and that will be a disappointment. In this case Morgan Stanley sticks to a relative call in that Toll shares will weaken on a relative comparison with the index.
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