Celgene: Pipeline To Drive Upside, Overhangs Could Be Removed Near-Term, Says Deutsche Bank
In a research report released today, Deutsche Bank analyst Robyn Karnauskas assigned a Buy rating on Celgene Corporation (NASDAQ:CELG) and raised her share price target to $134, following the company’s third-quarter earnings.
Karnauskas observed, “The focus of the 3Q call was the strong Otezla launch, and the pipeline, which we believe could potentially double the mkt cap in the next 3-5 years. We see CELG’s pipe as the most transformative in biotech. We project a 25% CAGR on EPS from ’14-19 (greater than BIIB’s) and thus are incr. our ’15 multiple to BIIB’s (Buy, CP -USD 316)’15 multiple of 26x. We also see NT removal of IP overhang and diversification beyond Revlimid. We strongly believe in the LT prospects of the co. and note the street could start including the pipe in’15.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Robyn Karnauskas has a total average return of 11.8% and a 71.8% success rate. Karnauskas has a 23.3% average return when recommending CELG, and is ranked #160 out of 3343 analysts.