This came out yesterday from Wilson HTM, analyst Graeme Wald has been very wrong on a number of stocks so I take anything he says with a grain of salt....
Wilson HTM summary "Our view is that ChemGenex will raise capital sooner rather than later and that the campaign will include a rights issue component. On that basis we upgrade our recommendation to HOLD previously SELL. For those who still own CXS hold it and wait for an offer. Those that did sell in Mar-Apr may be able to buy back in soon, for less. Omapro still sits amid a cloud of regulatory uncertainty, but the market is pricing in no further milestones from Hospira and only a 42% chance of US approval within 18 months. We prefer a probability weighting of 75% and to recognise the $100M+ milestone payments, appropriately discounted. There is no BUY case at this time, though. Much depends on the companys Type A meeting with FDA, which will set the way forward in the US. Target price is unchanged at 45 cps, because the stock will trade below valuation until its reputation is repaired."
CXS Price at posting:
29.0¢ Sentiment: None Disclosure: Not Held
