Analysts came out today with an optimistic view on biopharmaceutical giant Celgene Corporation (NASDAQ:CELG) and Irish pharmaceutical company Horizon Pharma PLC (NASDAQ:HZNP), as the iShares Nasdaq Biotechnology ETF (IBB) tried to recover recent losses with a one percent gain today.
Cantor analyst Mara Goldstein reiterated a Buy rating on shares of Celgene, with a price target of $163, after the company pre-announced in-line 2015 results and provided 2016 guidance that was a touch disappointing. Celgene also announced the promotions of Mark Alles to CEO and Jackie Fouse to President & COO.
Goldstein observed, “Our view has been that weak guidance relative to Street expectations would likely cause the shares to trade off, but that strong fundamentals would be, in our view, a counter to any weakness as we expect that guidance could trend up through 2016. Celgene, in our view, is a high-quality company with industry leading growth and a strong pipeline, and we think such weakness is recoverable, particularly with the recent de-risking of the REVLIMID patent cliff.”
The analyst concluded, “We continue to like Celgene’s combination of industry leading growth, de-risked patent cliff, sizable pipeline and limited near-term dependence on news flow, which in a tough biotech tape allows for less volatility, in our view. We continue to like the double-digit top- and bottom-line growth, strong cash flow, which we expect to be utilized to fund R&D, share repurchase, and acquisitions/ partnerships, and solid management team.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mara Goldstein has a yearly average return of -9.5% and a 31% success rate. Goldstein has a 11.5% average return when recommending CELG, and is ranked #3439 out of 3594 analysts.
Out of the 21 analysts polled by TipRanks, 19 rate Celgene Corporation stock a Buy, while 2 rate the stock a Hold. With a return potential of 45%, the stock’s consensus target price stands at $152.53.
Horizon Pharma PLC
Mizuho Securities analyst Irina Rivkind Koffler reiterated a Buy rating on shares of Horizon Pharma, with a price target of $36, after the company announced this morning that is adjusting its full year sales guidance for 2016. The company raised its net sales guidance from $1.025 billion to $1.050 billion for 2016 as it expects to close the acquisition of Crealta Holdings LLC sometime this week.
Koffler noted, “Our prior Krystexxa estimates had been more conservative and we need to update our model: We had modeled the Crealta deal closing later in 1Q:16 with $50M in Krystexxa sales for 2016E. Our current 2016 revenue estimate is $1.0B so while we are above consensus, we still fall below the lower end of current guidance. Management previously guided to revenue potential of $250M from this product and we modeled a much more conservative $123M product in 2020.”
The analyst concluded, “We are still working through the numbers but note that Horizon remains one of our top 2016 picks.”
According to TipRanks.com, analyst Irina Rivkind Koffler has a yearly average return of 39% and a 62% success rate. Koffler has a -3.4% average return when recommending HZNP, and is ranked #5 out of 3594 analysts.
Out of the 10 analysts polled by TipRanks, 8 rate Horizon Pharma stock a Buy, 1 rates the stock a Hold and 1 recommends a Sell. With a return potential of 88%, the stock’s consensus target price stands at $35.70.