Canaccord Bullish on Celgene Corporation (CELG) on Back of Revlimid Beat
In a research report published Thursday, Canaccord analyst John Newman reiterated a Buy rating on shares of Celgene Corporation (NASDAQ:CELG) with a price target of $156, after the pharma giant reported strong third-quarter financials driven by blowout Revlimid sales, prompting management to raise 2016 financial guidance for the third straight quarter. Celgene shares reacted to the earnings beat, rising nearly 6%.
Newman noted, “We view the strength of Celgene’s most recent quarterly results as a positive for the trajectory of the stock, and we will look forward to major clinical updates for ozanimod from two Phase 3 trials in 2017, as well as continued progress for GED-0301 and ongoing R squared studies for Revlimid. We also suspect CELG may re-evaluate long-term guidance at JP Morgan in early 2017 based on the strength of Revlimid growth and bullish comments from management on the growth outlook ahead.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average loss of 16.1% and a 28% success rate. Newman has a 10.3% loss return when recommending CELG, and is ranked #4052 out of 4188 analysts.
Out of the 18 analysts polled by TipRanks (in the past 3 months), 15 rate Celgene stock a Buy, while 3 rate the stock a Hold. With a return potential of 34%, the stock’s consensus target price stands at $140.27.