In a research report released Friday, Cantor analyst Elemer Piros reiterated a Sell rating on shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT), with a price target of $60, after the biopharmaceutical drug released its second-quarter results, with Ocaliva sales of $75,000, compared to consensus $1M estimates. Ocaliva was approved for treatment of Primary Biliary Cholangitis (PBC) on 5/27/16 and drug was shipped shortly thereafter.
Piros noted, “We caution that initial sales to patients and to distributors aren’t always indicative of potential true demand – Ocaliva has only been on the market for one month during the quarter. We see no reason to change our current estimates for 3Q:16 and for 2016, which stands at $7.5 million and $20 million, respectively.”
“In light of the guidance, we are lowering our estimates from $428 million to $406 million (includes the settlement). Furthermore, we are increasing the estimated cash balance for the period ending in 2Q:17 from $523 million to $558 million. Since the cash balance is part of our valuation, we are increasing our target price from $58 to $60/share,” the analyst added.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Elemer Piros has a yearly average return of -15% and a 36% success rate. Piros has a -14.2% average return when recommending ICPT, and is ranked #3920 out of 4090 analysts.
Out of the 18 analysts polled by TipRanks, 12 rate Intercept stock a Buy, 3 rate the stock a Hold and 3 recommend Sell. With a return potential of 38%, the stock’s consensus target price stands at $225.38.