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08/25/16 04:00:04 PM

Jazz Pharmaceuticals Public Limited Company, Dycom Industries Inc., Netflix, Inc.

Jazz Pharmaceuticals Public Limited Company(JAZZ) : Janney started coverage of Jazz Pharmaceuticals plc - Ordinary Shares (NASDAQ: JAZZ) with a Neutral rating, citing potential competition to its blockbuster narcolepsy franchise. Jazz's history was based on the growth of narcolepsy drug Xyrem, but its future is dependent upon the success of Vyxeos, an NDA-ready treatment for acute myeloid leukemia that Jazz picked up in its July 2016 acquisition of Celator. "Xyrem faces challenges from both branded competition and generics that are likely to limit Jazz's ability to sustain its blockbuster narcolepsy franchise beyond 2022. We expect muted growth until Vyxeos is FDA-approved and launched in 2H17. For this reason, we are initiating with a Neutral," analyst Ken Trbovich wrote in a note. Jazz currently derives about $1 billion in annual sales, or 85 percent of its revenues from Xyrem. Growth of the franchise has come primarily from price, which now exceeds $100,000/patient/year. Jazz began the transition away from its dependence on Xyrem for future growth with its acquisition of EUSA Pharma for $680 million in 2012 and furthered its move toward hematology-oncology (hemonc) with the $1 billion acquisition Gentium in 2014. In addition, Jazz's $1.5 billion acquisition of Celator Pharmaceuticals gives Jazz's hemonc business Vyxeos, a treatment in development that showed an improvement versus the standard of care in overall survival for patients with acute myeloid leukemia (AML). Trbovich noted that Vyxeos is likely to be the first major advancement in the treatment of Acute Myeloid Leukemia (AML) in decades to gain FDA approval after showing a benefit in overall survival, and it may also work in other forms of hematologic cancer. "Though we see much potential in Jazz's pipeline, primarily Vyxeos and to a lesser extend JZP-110, these products are not likely to begin contributing to revenues until 2018 and 2019, respectively. Absent meaningful growth until 2018 and meaningful catalysts for the stock until mid-to-late 2017," Trbovich added. Janney expects 2016 non-GAAP EPS of $9.81 on revenue of $1.478 billion, while its 2017 estimates is at $9.23/$1.558 billion.

Dycom Industries Inc.(DY) : D.A. Davidson reiterated its Buy rating on Dycom Industries, Inc. (NYSE: DY), saying the company is well positioned to leverage the market opportunity created by carrier spending. Carriers are investing to increase connection speeds, with many looking for 1GB/second standards in metro markets while the government is also providing incentives to encourage better Internet access in rural areas. "Although reports have indicated that some carriers may look to increase utilization of wireless networks to reach customers, these "wireless" networks are typically over 90% hard wired. We expect market demand to continue to grow over the next several years as the current build-out is still in the early stages," analyst John Rogers wrote in a note. Rogers noted that Dycom is among the best positioned to take advantage of this cycle as "customers are likely to push to consolidate supply chains and focus on contractors that can operate across local and regional markets." The analyst's first quarter EPS expectation of $1.57 (up from $1.53) is within management's guidance range for EPS of $1.47-$1.62 GAAP and $1.55-$1.70 adjusted. Roger also raised his FY17 EPS estimate by $0.10 to $5.05 and revenue forecast by $95 million to $3.14 billion. "Based on the current and continuing revenue and earnings momentum, we look for these shares to appreciate to $110 over the next 12-18 months, or 18x our FY18 EPS estimate ($6.00)," Rogers added.

Netflix, Inc.(NFLX) : On July 18, Netflix, Inc. (NASDAQ: NFLX) reported its EPS for the second quarter exceeding the estimates. However, revenue and outlook fell shy of the expectations triggering a sell-off in the following day. The stock dropped 13.13 percent on July 19. Following the results and outlook, most of the brokerages preferred to reiterate their rating on the stock and no one was ready to upgrade at least in the last more than two-month period. Therefore, when William Blair upgraded the shares of Netflix from Market Perform to an Outperform rating, investors were ready to venture into the stock thus boosting its price on Thursday. A Look Back The upgrade also made to look at all current sell-side sentiment on the stock in the last one-month period. Outperform/Buy Ratings BTIG reiterated its Buy rating, $130 as the price tag. Canaccord Genuity retained its Buy rating, price target $115. Cantor Fitzgerald reiterated its Buy rating. Cowen & Co. reiterated its Buy rating, price target $110. Drexel Hamilton reiterated its Buy rating, $110 as the price tag. Goldman Sachs retained its Buy rating, price objective $115. JPMorgan maintained its Buy rating, $116 as the price target. Merrill Lynch reiterated its Buy rating, $146 as the price target. MKM Partners retained its Buy rating and $130 price objective. Morgan Stanley retained its Buy rating, price tag $110. Nomura Holdings reiterated its Buy rating, price target $110. Oppenheimer maintained its Buy rating, price tag $114. Pacific Crest maintained its Buy rating, $125 price target. Piper Jaffray maintained its Buy rating, price objective $122. RBC Capital maintained its Buy rating, price objective $130. William Blair upgraded from Market Perform to Outperform. Hold Ratings Argus maintained its Hold rating. BMO Capital retained its Hold rating and $85 price objective. Citigroup reiterated its Hold rating, price tag $92. Credit Suisse maintained its Hold rating, price target $122. FBR Capital maintained its Hold rating, $90 as the price objective. Mizuho Securities reiterated its Hold rating, price tag $90. Needham retained its Hold rating. Sun Trust Robinson retained its Hold rating, price objective $100. UBS downgraded to Hold, price target $92. Sell Ratings Battle Road Research maintained its Sell rating. Bernstein reiterated its Sell rating, $62 price objective. Jefferies reiterated its Sell rating, $76 target. Wedbush retained its Sell rating.


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