While JP Morgan Healthcare Conference, which has become an agenda-setting meeting for pharma and biotech, is taking place in San Francisco, J.P. Morgan analyst Cory Kasimov weighs in on biopharmaceutical giant Celgene Corporation (NASDAQ:CELG) and cancer-immunotherapy company Juno Therapeutics Inc (NASDAQ:JUNO).
Cory Kasimov is out with an update on Celgene, straight from the 2016 J.P. Morgan Healthcare Conference. The analyst rates the stock an Overweight with a price target of $152, which implies an upside of 51% from current levels.
Kasimov noted, “2016 guidance slightly lighter than expected, affirmed 2020 guidance, significant mgmt changes take effect in March (Mark Alles to become CEO, Bob Hugin to continue as Chairman, Jackie Fouse to be COO). While 4Q15 EPS and the 2016 guide was a little light, we don’t believe today’s update in any way justifies the magnitude of the selloff in CELG. We see this weakness as a compelling opportunity.”
The analyst highlights potential catalysts for the stock: “Revlimid: potential US approval in non-del 5Q lower risk MDS by the April 16th PDUFA; REMARC data readout in mid-2016; data from the CONTINUUM trial in r/r CLL. Otezla: regulatory filing in Japan for psoriasis; longterm radiographic data in AS; Ph3 data in pts with psoriatic arthritis who are biologic-naive; Ph3 psoriasis data in Japanese pts; Ph2 data in AD. Partnered programs: update on sotatercept development plan in CKD expected in 1H16.”
According to TipRanks.com, a site that tracks and ranks analysts on their predictions, analyst Cory Kasimov has a yearly average return of -10% and a 29% success rate. Kasimov has a -6% average return when recommending CELG, and is ranked #3539 out of 3610 analysts.
As of this writing, all the 10 analysts polled by TipRanks, in the last 3 months, rate Celgene stock a Buy. With a return potential of nearly 51%, the stock’s consensus target price stands at $154.22.
Juno Therapeutics Inc
In addition, Kasimov reiterated an Overweight rating on shares of Juno Therapeutics, with a price target of $69, after the company announced the acquisition of AbVitro, a Boston based private biotech with a single cell sequencing platform.
Kasimov commented, “This high throughput, single cell sequencing technology allows for identification of fully human, natively paired TCR and CAR binders to develop binders against known targets as well as to discover novel targets. We expect this technology could be particularly helpful as JUNO works to identify targets in solid tumor indications. We continue to be encouraged by JUNO’s business development strategy, as we think the company’s multiple sources of technology/innovation (and continuing investment in expanding its platform) may prove to be a competitive advantage over the long term.”
According to data compiled by TipRanks.com, Kasimov has a -25.4% average return when recommending JUNO. The overwhelmingly majority of experts still say Juno Therapeutics is a “buy.” The average forecast is for the stock to hit $69 in the coming months.