Cubist Pharmaceuticals (NASDAQ: CBST) was downgraded by equities researchers at Cantor Fitzgerald from a “hold” rating to a “sell” rating in a report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $40.00 target price on the stock, up from their previous target price of $38.00.
The analysts wrote, “CBST has traded up in tandem with OPTR after Optimer announced on Feb 27 that it is exploring strategic alternatives. Cubist has been co-promoting Optimer’s Dificid antibiotic in hospitals since its launch, and the company has been mentioned in the press as a potential suitor for Optimer. We don’t think that Cubist is a likely acquirer of Dificid since (1) it is developing a competitive product for the treatment of C. difficile (Surotomycin) which could enter the market in early 2016; (2) Optimer already partnered EU rights for Dificid with Astellas, and we think that Cubist would prefer to leverage its planned sales force expansion in Europe by selling Surotomycin along with CXA-201; and (3) Cubist management believes that Surotomycin may have some competitive advantages to Dificid, and we think that the company may be able to drive more favorable pricing for its product. Because we don’t expect Cubist to acquire Optimer, we think that CBST valuation is not supported by fundamentals, and the stock could sell off if another bidder emerges.”
Cubist Pharmaceuticals (NASDAQ: CBST) traded down 2.85% on Wednesday, hitting $47.40. Cubist Pharmaceuticals has a 52-week low of $36.73 and a 52-week high of $49.86. The stock’s 50-day moving average is currently $44.99. The company has a market cap of $3.077 billion and a price-to-earnings ratio of 23.27.
Cubist Pharmaceuticals (NASDAQ: CBST) last issued its quarterly earnings data on Wednesday, January 23rd. The company reported $0.51 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.48 by $0.03. The company had revenue of $245.90 million for the quarter, compared to the consensus estimate of $246.42 million. During the same quarter in the previous year, the company posted $0.11 earnings per share. The company’s revenue for the quarter was up 15.5% on a year-over-year basis. Analysts expect that Cubist Pharmaceuticals will post $1.44 EPS for the current fiscal year.
CBST has been the subject of a number of other recent research reports. Analysts at Zacks reiterated a “neutral” rating on shares of Cubist Pharmaceuticals in a research note to investors on Thursday, March 28th. They now have a $49.00 price target on the stock. Separately, analysts at Credit Suisse initiated coverage on shares of Cubist Pharmaceuticals in a research note to investors on Friday, March 15th. They set a “neutral” rating and a $52.00 price target on the stock. Finally, analysts at Aegis initiated coverage on shares of Cubist Pharmaceuticals in a research note to investors on Wednesday, February 6th. They set a “hold” rating and a $45.00 price target on the stock.
One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and five have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $48.33.
Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) is a biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.