Piper Jaffray analyst Joshua Schimmer provides a 2H16 outlook for Ionis Pharmaceuticals Inc (NASDAQ:IONS) of what the analyst considers a “volatile year” for the company. However, Schimmer glimpses light at the end of the tunnel with a “particularly bright future” ahead for Ionis anchored on its pipeline progress.
With the biotech firm’s SMA BIIB-partnered antisense program (nusinersen) now on “fast track towards commercialization” following a successful ENDEAR study, Schimmer considers IONS as a “top mid-cap pick,” and subsequently, the analyst reiterates an Overweight rating with a $46 price target, marking a nearly 30% increase from where the shares last closed.
Schimmer believes, “While shares are likely to be volatile around nusinersen updates vs ones for AVXS and its rapidly emerging gene therapy, we believe nusinersen has enough of a head start in infantile onset SMA and a very clear head start in childhood SMA to stay ahead of the race, although the coming years should be informative. Beyond nusinersen, we see a compelling antisense platform that is very misunderstood by investors who focus on side effects that are either of minimal clinical relevance or will be obviated by the improving chemistry.”
As usual, we advise taking analyst notes with a grain of salt. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer is ranked #3,982 out of 4,120 analysts. Schimmer has a 38% success rate and loses 7.4% in his yearly returns. However, when recommending IONS, Schimmer gains 24.4% in average profits on the stock.
TipRanks analytics exhibit IONS as a Buy. Based on 8 analysts polled in the last 3 months by TipRanks, 3 rate a Buy on Ionis Pharma, 4 maintain a Hold, while 1 issues a Sell. The average price target is $37.17, marking a nearly 5% upside from where the stock is currently trading.
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