Array Biopharma Inc
Leerink’s top analyst Michael Schmidt was out today with a favorable report on shares of Array Biopharma Inc (NASDAQ:ARRY), raising the price target to $9.00 (from $6.00), while reiterating an Outperform rating, after the drug maker and its partner Pierre Fabre released positive top-line results from Part 1 of their two-part phase 3 COLUMBUS trial. Array shares reacted to the news, jumping over 70% to $6.26.
Schmidt commented, “The data look impressive to us, indicating a potential best-in-class profile for ARRY’s combination with potentially better tolerability and significantly longer median progression free survival (PFS) as compared to approved combinations by NVS (MP) and Roche. This confirms our upside thesis recently highlighted in a deep-dive (LINK). While the study just missed a secondary endpoint (comparison vs, encorafenib monotherapy), we think the approval probability is high, given the well established mechanism of MEK and BRAF inhibitor combinations.”
“We believe the results also read-through positively to the ongoing Phase III “BEACON” trial in colorectal cancer. Our new PT of $9 from $6 reflects a higher approval probability, as well as a higher peak market share for encorafenib/binimetinib in BRAF+ melanoma with a launch expected in 2018. ARRY still trades at a significant discount to other near-commercial oncology companies,” the analyst concludes.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Michael Schmidt has a yearly average return of 25.1% and a 68% success rate. Schmidt has a 8.7% average return when recommending ARRY, and is ranked #34 out of 4183 analysts.
As of this writing, all the 5 analysts polled by TipRanks rate Array stock a Buy. With a return potential of 44%, the stock’s consensus target price stands at $8.50.
In a research report published Monday, Argus analyst Jacob Kilstein reiterated a Buy rating on shares of Incyte Corporation (NASDAQ:INCY), while raising the price target to $98, which represents a potential upside of 11% from where the stock is currently trading.
Kilstein explained, “We are raising our price target on Incyte based on higher-than-expected 2Q16 sales and EPS and increased company guidance for Jakafi sales in 2016. Additionally, Incyte could be a takeover candidate given the recent uptick in healthcare M&A and selloff in biotech stocks, perhaps from Gilead who may want to boost its oncology pipeline.”
“We see room for appreciation given the promising pipeline and the growth trajectory of Jakafi, despite recent clinical setbacks. Our target price of $98 implies a multiple of 16.1-times our 2016 sales per share estimate. This multiple is below the peer average of 18.2, which we believe presents a value opportunity based on Incyte’s prospects for above-peer-average sales growth,” the analyst continued.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, analyst Jacob Kilstein has a yearly average return of 2.6% and a 63% success rate. Kilstein has a average return when recommending INCY, and is ranked #1704 out of 4183 analysts.
Out of the 18 analysts polled by TipRanks, 17 rate Incyte stock a Buy, while 1 rates the stock a Hold. With a return potential of 16%, the stock’s consensus target price stands at $101.73.