) to buy from neutral.
Analyst David Webber says, with the stock's drop over the past month, he sees more upside potential than downside risk at OSI's current price. He notes a key determinant of the stock price in the near term will be the outcome of a Phase III trial of Tarceva in the treatment of relapsed non-small-cell lung cancer. Webber thinks the current price partially discounts the chance that Tarceva will meet its primary endpoint of increased survival in this nearly completed trial.
He expects the company to be ready to report trial results early in the second quarter. Webber keeps his $4.14 loss and $54.3 million revenue estimates for fiscal 2004 (Sep.). He has a $36 target.