In a research report issued Thursday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on shares of Keryx Biopharmaceuticals (NASDAQ:KERX), while slashing the price target to $10 (from $18), after the company gave lower than expected first-quarter guidance. In reaction, Keryx shares are down nearly 6% as of this writing.
Aschoff observed, “Keryx reported 4Q15 total revenue of $5.8M, vs. consensus of $5.7M, an in-line result. At present, about 43% of the US sales are made through the DaVita Rx, Fresenius Rx, and some other pharmacies, which are not captured by IMS. Total revenue for the quarter included $4.8M of Auryxia US sales and $1 M in royalties related to Riona sales in Japan. Keryx guided US Auryxia sales to a below-consensus $31-34M, and as a result we reduce our target price [..] Keryx reported a cash balance of $200M, and has $125M in debt, which should fund Keryx to cash flow positivity. Non-dilutive financing could come from an EU partnership, and Keryx reaffirmed it’s in discussions with multiple potential partners for such a deal.”
“We expect its Phase 3 iron deficiency anemia label expansion trial to report positive top-line data in early 2Q16, which would pave the way for filing for FDA approval in 3Q16,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a yearly average return of -14.6% and a 28.7% success rate. Aschoff has a -22.7% average return when recommending KERX, and is ranked #3643 out of 3666 analysts.
Out of the 11 analysts polled by TipRanks, 5 rate Keryx stock a Buy, 4 rate the stock a Hold and 2 recommend a Sell. With a return potential of 208%, the stock’s consensus target price stands at $9.90.