Credit Suisse analyst Alethia Young came out today with new ratings and price targets on a handful of healthcare stocks. Let’s take a look and see what the analyst has to say about Gilead Sciences, Inc. (NASDAQ:GILD), Celgene Corporation (NASDAQ:CELG), and Incyte Corporation (NASDAQ:INCY).
Gilead Sciences, Inc.
Analyst Alethia Young initiated coverage on shares of Gilead Sciences, with an Outperform rating and price target of $125, which represents a potential upside of 38.5% from where the stock is currently trading.
Young wrote, “The consensus view of Gilead is that there is a major patent cliff for the $13.5B HIV franchise in 2018-2021. For its Hep C franchise, there are also concerns around a lack of sustainability of revenues. These concerns have contracted the 2016 P/E multiple to ~7x. Our in-depth analysis of HIV and HCV suggests that both these fears are overdone and that shares currently trade at a steep discount relative to the sustainable earnings they should continue to deliver in 2025 and beyond.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alethia Young has a yearly average return of -14.6% and a 34% success rate. Young is ranked #3378 out of 3580 analysts.
Out of the 23 analysts polled by TipRanks in the last 3 months, 9 rate Gilead Sciences stock a Buy, while 2 rate the stock a Hold. With a return potential of 40%, the stock’s consensus target price stands at $126.50.
The analyst initiated coverage on shares of Celgene, with an Outperform rating and price target of $149, which implies an upside of 38% from current levels.
Young stated, “We believe that CELG looks cheap relative to its growth after our review of current and pipeline products. We see more upside potential on base business products than the Street and CELG guidance.”
The overwhelmingly majority of analysts say Celgene is a “strong buy.” The average forecast is for the stock to hit $153 in the coming months, according to TipRanks.
Finally, Young initiated coverage on shares of Incyte, with an Outperform rating and price target of $110, which represents a potential upside of 48% from where the stock is currently trading.
The analyst noted, “We took a big picture look and see upside potential on other programs besides epacadostat (the IDO). We think (1) Baracitinib royalties will be higher than the Street, (2) bigger market opportunity for Jakafi’s PV indication, and (3) the pipeline is valuable and will yield interesting combos in cancer. However, we think that we will get more data on epacadostat over the next 12 months that may validate profile in different tumor types.”
As of this writing, all the 13 analysts polled by TipRanks rate Incyte stock a Buy. With a return potential of 74%, the stock’s consensus target price stands at $129.17.