Diamonds and Dogs
Sarepta Therapeutics (SRPT) keeps shooting higher. Drugmaker, Sarepta is up 3% after HMO provider Cigna will now cover their Duchenne muscular dystrophy drug, eteplirsen for their clients. Sarepta also received an upgrade at RBC Capital with a $108 price target based on some pretty conservative assumptions, which represent potential for real upside for the drug. Sarepta's stock is up 100% in the last two weeks and now the RBC analyst thinks the stock could jump another 77%. Not bad.
Shareholders are cashing in their Paychex (PAYX). The Rochester, NY-based payroll firm beat earnings of 60 cents per share, surpassing consensus estimates of 57 cents per share. Revenue rose 9% year-over-year to $785.5 million, above Wall Street's projected $782.8 million in revenue. But the stock is down 4% after lowering payroll service revenue guidance to a range of 3% to 4% while also lowering net income guidance to an increase of 7%. The company reaffirmed HRS revenue to a range of 12% to 14%, but with the stock trading for 24 times earnings, the stock seems a little expensive. Good news is the stock has a great dividend yield of 3%.