Ariad Pharmaceuticals, Inc. (ARIA) Continues to Look Compelling, Says Cowen

In a research report released Friday, Cowen analyst Chris Shibutani reiterated an Outperform rating on shares of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) with a price target of $10, as the company reported its second-quarter results and provided investors with an update on its regulatory, commercial and clinical progress. ARIA is currently trading at $9.63, up $0.16 or 1.69%.

Shibutani wrote, “Turning to 2Q results, our thinking heading into the quarter was that all of the above matter a great deal, but that the quarterly report would primarily serve to “remind” a broader audience of these known facts. And, hopefully, that Iclusig would not miss. Well – as if getting paid by the French ($25.5MM booked during 2Q) wasn’t enough to be pleased by, US Iclusig sales surprised with a bonafide beat. One would have to go back more than 2 years to find a quarter when this was the case. Certainly Q1’s mediocre sales figure kept our expectations tempered. So, even with acknowledgement that the quarter benefitted a smidge ($1.4MM) from an inventory channel boost the US reported sales of $32.6MM impresses, beating our $26MM estimate.”

“Finally, on the heels of such an impressive day for the stock, we find it entirely logical that ARIA is very much a part of the conversation when investors contemplate M&A as a potential strategic paths for this company. We do consider brigatinib to be amongst the most attractive late-stage, near-to-becoming commercialized oncology growth assets. So all in all, a very good and accomplished quarter,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Shibutani has a yearly average return of 5.0% and a 75.0% success rate. Shibutani has a 7.0% average return when recommending ARIA, and is ranked #1638 out of 4087 analysts.

Out of the 6 analysts polled by TipRanks (in the past 3 months), 4 rate Ariad stock a Buy, 1 rates the stock a Hold and 1 recommends a Sell. With a return potential of nearly 6%, the stock’s consensus target price stands at $10.17.


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