Canaccord Reiterates Buy on Kite Pharma Inc Following 1Q:15 Update
In a research report issued today, Canaccord Genuity analyst John Newman reiterated a Buy rating on Kite Pharma Inc (NASDAQ:KITE) with a price target of $90, following the company’s first-quarter financial results and update on its pipeline. With Kite shares last trading at $47.02, Newman’s price target implies potential upside of about 91 percent.
Newman noted, “KITE reported 1Q15 GAAP EPS of ($0.36) vs. consensus ($0.29), but this is a moot point due to the fact that KITE is a clinical stage company, not a commercial stage company (please note we are reporting non-GAAP EPS going forward). For early biotechnology companies, we remind investors that revenues and EPS do not hold much value since the valuation is mainly driven on potential future sales and clinical milestones for the company. We maintain our BUY position and remind investors not to focus on EPS and revenue numbers from earnings, but rather on long-term growth and upcoming milestones to be the driver for the stock.”
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 6.5% and a 53.3% success rate. Newman has a -7.3% average return when recommending KITE, and is ranked #795 out of 3604 analysts.