January 10, 2014 / 3:18 PM / 4 years ago

MARKET PULSE-Chelsea, Retrophin, YRC Worldwide, Target, Plug Power

(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks were slightly down on Friday as the December jobs report came in much weaker than anticipated. The Dow Jones industrial average was down 0.30 percent at 16,395.55, the S&P 500 was down 0.21 percent at 1,834.18 and the Nasdaq Composite was down 0.20 percent at 4147.7.


U.S. Food and Drug Administration reviewers said a treatment developed by Chelsea for a rare type of low blood pressure lack evidence that the drug’s benefit is durable over a longer period of time, according to documents on the FDA’s website.

** RETROPHIN INC, $11, +29.41 pct

The pharmaceutical company said it expects gross proceeds of $40 million from a share offering and use it to get regulatory approval for its nasal spray to aid milk ejection for breastfeeding mothers. It will also use the fund to start trials for some of its experimental drugs.

** YRC WORLDWIDE INC, $12.36, -21.12 pct

Workers at the trucking company represented by the Teamsters union rejected a contract extension that the company proposed, putting a plan to restructure its debt in jeopardy.


** CONATUS PHARMACEUTICALS INC, $13.42, +36.94 pct

Intercept’s shares nearly quadrupled to a life high of $305 on Thursday after the company’s drug to treat liver disease caused by fat buildup was found effective in a trial, paving the way for it to become the first approved treatment for the chronic condition.

At least three brokerages - Citigroup, Needham and Oppenheimer - raised their price targets on the stock on Friday. Shares of biotechnology company Conatus, which is focused on the treatment of liver disease, also jumped on the news.


The clothing retailer estimated a wider loss for the fourth quarter as fewer customers shopped at its stores in December. The company also said late on Thursday comparable-store sales would be flat to 1 percent higher in the quarter. It had earlier forecast a 1-5 percent growth.

Brokerage Janney Capital Markets cut its rating on the retailer’s stock to “neutral” from “buy.” The brokerage also cut its fair value on the stock to $3 from $5.

** BARRACUDA NETWORKS INC, $34.5, -11.54 pct

Brokerage BofA Merrill Lynch lowered its rating on the data storage and security company’s stock to “neutral” from “buy.”

** FIVE BELOW INC, $40.35, -7.43 pct

At least three brokerages cut their price targets on the specialty value retailer’s stock after the company cut its fourth-quarter forecast late on Thursday, blaming the weather for a fall in customer traffic.

Sterne Agee & Leach cut its price target on the stock to $45 from $56 and Jefferies & Co cut its price target to $48 from $51, late on Thursday. Guggenheim Securities cut its price target to $54 from $57 on Friday.

** FIFTH & PACIFIC COS INC, $31, -2.70 pct

The owner of the Kate Spade brand estimated full-year revenue below analysts’ expectations and said Chief Executive William McComb will step down next month.

** IMMUNOMEDICS INC, $5.5829, +7.78 pct

The company said it had started a late-stage study of its pancreatic cancer drug, clivatuzumab tetraxetan, with the main goal of overall survival. The trial will study the safety and efficacy of the drug combined with another chemotherapy drug in about 440 patients with metastatic pancreatic cancer who have received at least two previous therapies.

** BAZAARVOICE INC, $7.22, -12.48 pct

A federal court ruled against Bazaarvoice Inc’s BV.O $168.2 million acquisition of its main rival PowerReviews Inc, saying the deal could lead to one firm dominating the online product rating and review market, a court filing showed.

** SEARS HOLDINGS CORP, $36.96, -13.18 pct

The retailer on Thursday reported declines in comparable-store sales at its Kmart and U.S. namesake chain for the crucial holiday season that were even sharper than for the third quarter.

** PHARMERICA CORP, $22.77, +11.67 pct

The pharmacy services provider said it expected 2014 revenue of $1.67 billion to $1.72 billion, ahead of analysts’ estimates of $1.52 billion. The company said its ongoing restructuring program would save $50 million annually, when it is fully implemented in the fourth quarter of 2014.

** PLUG POWER INC, $3.78, +13.86 pct

The fuel cell maker said it would offer 10 million shares in an underwritten offering and use the proceeds for working capital and other general corporate purposes including, capital expenses. The company’s shares rallied after the company said on Tuesday it would develop hydrogen fuel cell systems for 20 FedEx Express electric delivery trucks in a $3 million, U.S. Department of Energy-funded project.

** ABERCROMBIE & FITCH CO, $37.09, +11.68 pct

At least one brokerage raised its rating on the teen apparel retailer’s stock after the company raised its full-year earnings forecast on Thursday, citing higher-than-expected sales in the fourth quarter to date.

Janney Capital Markets upgraded the stock to “buy” and raised its price target to $49 from $34. Mizuho Securities USA raised its price target to $38 from $36, while Susqehanna Financial Group raised their price target to $46 from $43.

** GALECTIN THERAPEUTICS INC, $16.74, +24.08 pct

The company said it raised gross proceeds of $23.9 million through an offering of about 2.4 million shares that ended on Thursday. The company said it will use net proceeds of $23.2 million to fund the mid-stage trial of its fibrosis drug. The company said it has about $32.3 million in cash.

** TARGET CORP, $62.55, -1.25 pct

The company said a massive payment card data breach that occurred during the first three weeks of the holiday shopping season affected up to 70 million people, far more than previously estimated.

** ALCOA INC, $10.01, -6.36 pct

The company reported a massive quarterly loss on Thursday after recent declines in aluminum prices led to a $1.7 billion non-cash impairment charge on smelter acquisitions.

** SYNTA PHARMACEUTICALS CORP, $6.248, +7.35 pct

The company said it has started three studies to test its experimental drug ganetespib for two forms of blood cancer. The trials are sponsored by Cardiff University in the UK.

** TIFFANY & CO, $90.21, -1.96 pct

** ZALE CORP, $16.5, +16.61 pct

U.S. jeweler Tiffany reported a 4 percent rise in sales through November and December, helped by strong demand in America and Asia. Comparable store sales rose 6 percent in the two months, excluding the impact of currency fluctuations. Lower-end peer Zale Corp ZLC.N reported a 2 percent rise in comparable-store sales for the same period, driven by higher sales at its Zales Jewelers and Zales Outlet stores.

** JINKOSOLAR HOLDING CO LTD, $35.92, +3.28 pct

The Chinese solar company said it would operate the restructured factories of Topoint from Jan. 13, boosting its manufacturing capacity to 2 gigawatt (GW) from 1.5 GW. JinkoSolar plans to buy these assets once Topoint, based in China’s southeastern coastal province of Zhejiang, completes its reorganization.

** APOLLO GLOBAL MANAGEMENT LLC, $35.68, +1.54 pct

The company said on Thursday it had completed fundraising for its latest flagship global private equity fund, amassing $17.5 billion from investors, the most any such fund has raised since the financial crisis.

** BALLARD POWER SYSTEMS, $2.4401, +17.31 pct

The Canadian fuel cell maker said on Thursday it had sold about 400 kilowatts of FCgen- 1300 fuel cell stack product to Taiwan-based M-Field Energy Ltd. FCgen- 1300 fuel cell is a low-cost product, designed specifically for stationary applications and is incorporated into systems developed for backup power.

** NATURAL RESOURCE PARTNERS LP, $16.93, -16.77 pct

The company, which owns interests in coal and oil and gas reserves, said it reduced its quarterly payout by 20 cents to 35 cents per share due to a fall in coal revenue. The company also forecast lower-than-expected 2014 results due to weak coal prices and lower production.


The company said the U.S. Department of Justice has requested documents related to the sale of the cholesterol drug Juxtapid, its only approved product. Aegerion also forecast net product sales of $190 million to $210 million in 2014. Analysts on average were expecting the company to post revenue of $204 million, according to Thomson Reuters I/B/E/S.

Cowen & Co analyst Nicholas Bishop cut the price target on the stock to $95 from $105, saying “investors were looking for guidance just above consensus.” Jefferies & Co cut its target to $90 from $102.

** PROGRESS SOFTWARE CORP, $23.46, -8.07 pct

The enterprise software maker reported fourth-quarter earnings below Wall Street expectations and forecast first-quarter results that fell short of analysts’ estimates.

** GAP INC, $39.53, +0.28 pct

The apparel retailer reported a lower-than-expected 1 percent increase in holiday season comparable sales, hurt by weak business at its Old Navy chain. Janney Capital Markets cut its fair value on the apparel retailer’s stock to $46 from $48.

** STEMCELLS INC, $1.535, +6.60 pct

The company said it would complete enrollment of patients in a trial testing purified human stem cells as a treatment for chronic spinal cord injury. Stemcells, which said it transplanted the cells into its first patient in North America, said the expansion of its study would pave the way for a mid-stage study it plans to start by the middle of the year. (Compiled by Rohit T.K.; Edited by Don Sebastian)

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