Cantor Bullish on Celgene Corporation (CELG) After Raising Guidance; Sees 36% Upside


Cantor analyst Mara Goldstein came out today with a bullish note on shares of Celgene Corporation (NASDAQ:CELG), after the pharma giant pre-announced 2016 results that were in line with consensus, and modestly bumped up 2017 estimates. Goldstein reiterated an Overweight rating on CELG, with a price target of $159, which represents a potential upside of 36% from where the stock is currently trading.

Goldstein wrote, “CELG shares had a somewhat muted reaction to the upgraded guidance earlier this week and have been modestly underperformed the BTK index over the past few months. We think this disconnect between the fundamentals and the share price performance may be a combination of market conditions as well as a modest view of the pipeline, particularly exacerbated by the lack of upward momentum in the company’s longer-term guidance.”

“We continue to see opportunities for CELG shares to appreciate based on the strength of the current portfolio and a growing pipeline that is not yet priced into the valuation, in our view. Guidance for 2017 reflects the strength of the current portfolio, and to some degree stands in contrast to conservative beginning of year guidance that advances through the year. We think the company’s unique lever is substantial flexibility, which is driving upside,” the analyst concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mara Goldstein has a yearly average return of -0.9% and a 42% success rate. Goldstein has a 13.6% average return when recommending CELG, and is ranked #3392 out of 4342 analysts.

Out of the 28 analysts polled by TipRanks, 24 rate Celgene stock a Buy, while 4 rate the stock a Hold. With a return potential of 19%, the stock’s consensus target price stands at $138.95.