Canaccord Pounds the Table on Celgene Corporation
Canaccord Genuity analyst John Newman was out pounding the table on Celgene Corporation (NASDAQ:CELG) Thursday, reiterating a Buy rating and price target of $156, which implies an upside of 33.5% from current levels.
Newman noted, “We believe GED-0301 could reach $800M peak sales by 2022 in Crohn’s disease. Additionally, due to its mechanism of action, the drug may penetrate into ulcertive colitis (UC), which is a massive ~$1.8B market. The company is currently planning a phase 2 study in UC (trial initiation by 2H15), which we believe may have significant upswing to the stock if results remain positive. Finally, we are adjusting our 2015/2016 EPS estimates based on moderating Otezla sales, due to slower US and EU ramp.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 6.9% and a 55.7% success rate. Newman has a 1.8% average return when recommending CELG, and is ranked #736 out of 3606 analysts.