In a research report issued Friday, Canaccord Genuity analyst John Newman reiterated a Buy rating on Celgene Corporation (NASDAQ:CELG) and raised the price target to $190 (from $156), which implies an upside of 39% from current levels. The new price target reflects higher near- and long-term guidance, and higher revenue and EPS estimates following the recent second-quarter results.
Newman commented: “Celgene’s higher revenue and EPS guidance for both 2015 and 2020 despite the ~$7B Receptos acquisition combined with margin expansion to 2020 suggests continued long-term upside, in our view. The company’s aggressive M&A and licensing strategy ahead of generic Revlimid entry potentially in the 2020-2027 range positions the company beyond Revlimid, which could reach $10B WW by 2020. CELG estimates that Receptos’ ozanimod could add $4-6B peak revenues from Multiple Sclerosis and Ulcerative Colitis, not including upside from Crohn’s Psoriasis, or Lupus.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 18.5% and a 63.4% success rate. Newman has a 18.7% average return when recommending CELG, and is ranked #98 out of 3714 analysts.
Out of the 16 analysts polled by TipRanks, 13 rate Celgene Corporation stock a Buy, while 3 rate the stock a Hold. With a downside potential of 1.5%, the stock’s consensus target price stands at $134.46.