Jefferies Weighs in on Opko Health Inc. (OPK) Following Palmetto Negative Coverage Decision

Jefferies analyst Brandon Couillard was out today with a few insights on Opko Health Inc. (NASDAQ:OPK), after medicare contractor Palmetto issued a final local coverage determination (LCD) for Opko’s 4Kscore prostate cancer assay in which it deemed the test not suitable for reimbursement coverage. Opko shares reacted to the determination, falling nearly 7% as of this writing.

Couillard commented, “We expect shares of OPK to trade lower over the coming periods on the adverse Palmetto decision that diminishes the prospects for one of OPK’s key near-term growth drivers (not to mention a major justification for the Bio-Reference Labs acquisition). While we await further confirmation from Novitas before formally revisiting our model, consensus revenues look high & seem likely to trend lower, in our view, in the event 4Kscore is unsuccessful securing a Medicare coverage decision.”

As such, the analyst reiterated a Hold rating on shares of Opko Health with a price target of $10, which represents a slight upside potential from current levels.

As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brandon Couillard has a yearly average return of 12.9% and a 69% success rate. Couillard is ranked #190 out of 4190 analysts.

Out of the 6 analysts polled by TipRanks, 4 rate Opko stock a Buy, while 2 rate the stock a Hold. With a return potential of 75%, the stock’s consensus target price stands at $17.

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