Skip to main content
Premium Trial:

Request an Annual Quote

Analysts Raise Targets on Affymetrix's Stock but Remain Cautious

NEW YORK (GenomeWeb News) – Analysts today upped their price targets on Affymetrix's stock, after the firm posted revenues and net income that surpassed analysts' consensus estimate.

After the close of the market yesterday, Affy reported total second-quarter revenue of $81.6 million, compared to $86.9 million in the comparable period of 2008. Though the revenues declined year over year, the results easily beat analysts' consensus estimates on both the top and bottom lines.

Following the release of its results, Affy's shares soared on the Nasdaq, and at least a couple of analysts raised their price targets on the firm's shares. However, they remain cautious about the firm's turnaround.

"The apparent stabilization of Affymetrix's business continues the trend we saw last quarter, though we still remain cautious on the company's turnaround," wrote Thomas Weisel Partners analyst Peter Lawson in a research note. "While we continue to see improvement in execution, we are waiting to see more consistency in their operations and clear signs of a turnaround before becoming more constructive."

Lawson increased his third-quarter revenues estimates for the firm to $79 million from $75 million. He also increased his 12-month price target on the firm's shares to $6 from $5.

Likewise, Isaac Ro, an analyst with Leerink Swann, wrote, "Exeecution is improving but we remain cautious on the long-term viability of new products before becoming more constructive on Affymetrix shares but raise our valuation to $7." Ro previously had a price target of $5 on the stock.

In mid-afternoon trade on the Nasdaq, Affy's shares were up 36 percent at $8.02.

The Scan

Harvard Team Report One-Time Base Editing Treatment for Motor Neuron Disease in Mice

A base-editing approach restored SMN levels and improved motor function in a mouse model of spinal muscular atrophy, a new Science paper reports.

International Team Examines History of North American Horses

Genetic and other analyses presented in Science find that horses spread to the northern Rockies and Great Plains by the first half of the 17th century.

New Study Examines Genetic Dominance Within UK Biobank

Researchers analyze instances of genetic dominance within UK Biobank data, as they report in Science.

Cell Signaling Pathway Identified as Metastasis Suppressor

A new study in Nature homes in on the STING pathway as a suppressor of metastasis in a mouse model of lung cancer.