Celgene Corporation (CELG) Earnings Estimates Raised At Canaccord

In a research report issued today, Canaccord Genuity analyst John Newman raised his earnings estimates for Celgene Corporation (NASDAQ:CELG) based on higher 2015 and 2020 guidance from the company. Newman’s FY2015 adj. EPS estimate raised to $4.74 from $4.67 based on CELG guidance of $4.75-$4.85, and FY2020 adj. EPS estimate raised to $11.31 from $11.08 based on higher CELG guidance of $13.00.

The analyst also shed some light on Receptos Inc (NASDAQ:RCPT) acquisition, noting, “CELG gains worldwide rights to the asset in ulcerative colitis and multiple sclerosis, with development also likely in Crohn’s disease. We expect the company to partner the asset in MS, which could be lucrative given Ozanimod has a similar mechanism of action as Gilenya, with >$2.5B in WW revenues.”

“Assuming Ozanimod’s safety profile holds, we expect the drug to be used ahead of biologics in Crohn’s disease, due to similar efficacy and more convenient dosing. Ozanimod showed a 7.6% improvement for induction of remission in a Phase 2 study for ulcerative colitis, which compares well vs. Humira’s 7.2-9.3% improvement in Phase 3. Similar to Otezla, we believe Ozanimod can capture share from biologics in UC due to similar efficacy and more convenient dosing.”,  the analyst continued.

Newman rates Celgene stock a Buy with a price target of $156, which implies an upside of 19% from current levels.

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 20.9% and a 67.2% success rate. Newman has a 6.8% average return when recommending CELG, and is ranked #60 out of 3708 analysts.

Out of the 16 analysts polled by TipRanks, 13 rate Celgene Corporation stock a Buy, while 3 rate the stock a Hold. With a return potential of 2.7%, the stock’s consensus target price stands at $134.46.


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