Stock Picks: Bristol-Myers Squibb, Clarient, Dell, eBay

Wall Street analysts offer buy, sell, or hold opinions on stocks in the news on June 11

By Businessweek.com and Bloomberg News Staff

Bristol-Myers Squibb Co.: Leerink Swann equity analyst Seamus Fernandez raised a rating on shares of Bristol-Myers Squibb Co. (BMY) to outperform from market perform on June 11. He raised a discounted cash flow-based valuation range on the shares to $28 to $29 from $23 to $24.

On June 10, Bristol-Myers and Pfizer Inc. (PFE) ended a trial of an experimental blood thinner after a panel found "clear evidence" the drug, apixaban, helped reduce stroke risk in patients with irregular heartbeats. The independent review panel deemed apixaban more effective than aspirin in preventing strokes and embolism in patients with atrial fibrillation who can't take blood thinners such as warfarin, the companies said in a joint statement today. The study, dubbed Averroes, was stopped early, after the interim review, and covered 5,600 patients in 36 countries, the companies said in the statement.

The blood thinner is among five drugs for which Bristol-Myers is seeking Food & Drug Administration approval by 2012, the company said in March.

In a note, Fernandez said the rating change on Bristol-Myers was based primarily on "superior pipeline execution." He noted that "in the past week alone, we have … [a] more positive outlook for ipilimumab in metastatic melanoma and Sprycel in second- and front-line chronic myelogenous leukemia [and a] heightened conviction that Apixaban … will be a blockbuster."

The analyst also noted "improved visibility on exciting … oncology pipeline opportunities" for Bristol-Myers.

Clarient Inc.: Morgan Joseph equity analyst Bruce Jackson maintained a buy rating and $4 price target on shares of Clarient Inc. (CLRT) on June 11. Morgan Joseph had initiated coverage on the shares with a buy rating on June 8.

In a note, Jackson said the provider of technologies and services for cancer treatment announced an agreement on June 10 to become the preferred genetic testing lab for Generation Health (GH), a genetic benefit management company partly owned by CVS Caremark (CVS).

Jackson said Generation Health and CVS have a strategic partnership to expand pharmacogenomic (PGx) clinical and testing services for CVS Caremark pharmacy benefit management clients to improve care for patients who either are nonresponsive to their medications or have adverse reactions.

"This agreement expands the potential market for Clarient and ensures reimbursement for all of the diagnostic tests done through GH's nationwide network of payor clients," Jackson wrote.

The analyst also noted Clarient's June 8 announcement that the U.K. Patent Office has granted a U.K. patent on the company's TLE3 biomarker, a marker that may be used to predict which cancer patients will respond favorably to taxane therapy. Also on June 8, Clarient received a Notice of Allowance from the U.S. Patent & Trademark Office for a U.S. patent on the TLE3 biomarker.

Dell Inc.: Kaufman Bros. equity analyst Shaw Wu maintained a hold rating and $14 price target on shares of Dell Inc. (DELL) on June 11.

Business Exchange

Track and share business topics across the Web.