Maxim analyst Jason McCarthy was out pounding the table on Kite Pharma Inc (NASDAQ:KITE) Thursday, reiterating a Buy rating and a price target of $87, which implies an upside of 44% from current levels.
McCarthy wrote, “We enjoyed a day and evening with Kite management and clients, and what we see is Kite differentiating itself from the CAR-T pack, Juno and Novartis. Approvals for each company in refractory B cell cancer are likely in 2017, but that may be where the similarities end. Thus, an interesting dynamic is setting up for 2016/2017.”
“Kite is targeting the much larger population of lymphoma, where Novartis and Juno are each targeting leukemia, which is significantly smaller. Questions to think about are: How will this impact pricing, and what will both manufacturing and COGs look like? How will the upcoming election year influence the new drug landscape? Kite may have distinct advantages over the competition,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a total average return of -7.3% and a 28.0% success rate. McCarthy has a 1.1% average return when recommending KITE, and is ranked #3338 out of 3766 analysts.
Out of the 9 analysts polled by TipRanks, 8 rate Kite Pharma stock a Buy, while 1 rates the stock a Hold. With a return potential of 36%, the stock’s consensus target price stands at $82.57.