J.P. Morgan Maintains Overweight on Juno Therapeutics Inc Following 1Q:15 Update
J.P. Morgan analyst Cory Kasimov came out with a few insights on the biopharmaceutical Juno Therapeutics Inc (NASDAQ:JUNO), after the company released its first-quarter results and provided a corporate update. The analyst maintained an Overweight rating on the stock with a price target of $66, which represents a potential upside of nearly 40% from where the stock is currently trading.
Kasimov wrote, “The company reviewed progress made during the Q including settlement of the litigation with Penn/NVS as well as progress on the manufacturing build out, clinical development and BD activity. On the latter, JUNO announced the acquisition of Stage Cell Therapeutics for ~$60M upfront and ~0.5M shares, which mgmt noted will provide improved cell selection and activation capabilities, manufacturing automation, improved supply chain, and importantly, lower expected cost of goods. Previous 2015 cash burn guidance of $125-150M (excluding BD inflows/outflows and litigation expenses) was reiterated, though expected to be towards the upper half.”
Bottom line, “Our thesis is unchanged: while we think it is premature (and unnecessary) to pick a winner in these early innings of the CAR-T evolution, we believe JUNO’s multiple sources of technology/innovation (and continuing investment in expanding its platform) may prove to be a competitive advantage over time.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 10.4% and a 61.5% success rate. Kasimov has a -17.2% average return when recommending JUNO, and is ranked #403 out of 3600 analysts.