Select Medical stock soars after upbeat earnings and outlook prompts a double upgrade at BofA
Shares of Select Medical Holdings Corp. soared 19.5% toward a record in morning trading Friday, after the medical rehabilitation services company reported a fourth-quarter profit that rose well above expectations and provided an upbeat outlook, prompting BofA Securities analyst Kevin Fischbeck to swing to bullish from bearish. The company reported late Thursday earnings per share rose to 57 cents from 24 cents, above the FactSet consensus of 36 cents, the seventh-straight quarter that EPS beat forecasts. Revenue grew 6.2% to $1.46 billion, beating expectations of $1.41 billion. The company said it expects 2021 EPS of $2.26 to $2.48, compared with the FactSet consensus at the end of January of $1.64. BofA’s Fischbeck double upgraded the stock (SEM) to buy from underperform, while raising his price target to $36 from $30. “SEM has been a net beneficiary from COVID, and there is now reason
BioNTech SE (NASDAQ:
BNTX) was one of the greatest feats in medicine. The company leveraged cutting-edge messenger RNA (mRNA) to essentially simulate the virus, allowing a patient’s own immune system to develop antibodies against it.
It’s unclear how much money this vaccine will generate for PFE stock. But it could be over $10 billion in the next few years. What’s more, the experience with mRNA could lead to other treatments, such as treatments for cancer.
In the meantime, PFE is in the midst of a rebranding (there is a new logo) and rethinking of its overall strategy. It’s all part of being much more focused on prescription drugs and vaccines (as seen with the spinoff of the Upjohn division and the consumer health businesses like Advil). This segment not only has premium pricing but large market opportunities.