In Vienna, Austria at the United European Gastroenterology Week (UEGW) Conference held from October 15th through the 19th, Celgene Corporation (NASDAQ:CELG) announced new data from its randomized, double-blind, multicenter, exploratory phase 1b trial that assessed the effects of its investigational oral pipeline drug GED-0301 in patients with active Crohn’s disease.

While Jefferies analyst Brian Abrahams believes the new data does not impact the “promise/risk” factor of the drug, he does “see upside” and therefore reiterates a Buy rating on shares of CELG with a $134 price target, which represents a nearly 34% increase from where the stock is currently trading.

From Abahams’ perspective, “Endoscopy data remains mixed and hard to interpret,” recognizing “contradictory trends.” Furthermore, while the biomarker results are “interesting” to Abrahams, he finds them ultimately “difficult to interpret” considering that two separate approaches of “cutting same data” and subsetting a given population makes it challenging to compare results.

The analyst notes, “New info from detailed UEGW ‘0301 data/discussion do not substantially change prob. of LT success– with key endoscopy data still looking mixed and some inconsistencies in the small dataset, but promising symptomatic benefits continuing to speak to potential true treatment effect. At this point we believe mkt is placing limited value on asset, limiting downside, and now through this event we see upside oppty as focus shifts to underappreciated growth/pipeline.”

“Though ‘0301 still has risks, we think the overall I&I franchise with IBD specifically remains underappreciated for CELG. We currently assume a 40% probability of success for ‘0301,” Abrahams concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Brian Abrahams is ranked #316 out of 4,180 analysts. Abrahams has a 54% success rate and earns 8.6% in his annual returns. When recommending CELG, Abrahams gains 2.7% in average profits on the stock.

TipRanks analytics exhibit CELG as a Strong Buy. Based on 19 analysts polled in the last 3 months, 16 rate a Buy on CELG, while 3 maintain a Hold. The 12-month price target stands at $140.27, marking a nearly 40% upside from where the shares last closed.