Oppenheimer’s Take on Opko Health Inc. (OPK) Following 2Q16 Results

Oppenheimer analyst Rohit Vanjani came out today with a neutral stance on shares of Opko Health Inc. (NASDAQ:OPK), after the drug maker reported second-quarter results, posting revenue of $357.1 million, which beat Vanjani’s and consensus estimates of $318.5 million and $324.1 million, respectively. The analyst reiterated a Market Perform rating, while no price target was provided.

Vanjani noted, “Patient volumes for GeneDx continue to grow steadily, and management also commented that it is making progress on Bio-Reference’s profitability and improving on bad debt metrics. With respect to the 4Kscore test, the company expects a coverage decision from the Novitas MAC in the October timeframe. OPKO still expects CPT code issuance for the test on January 1, 2017, which should expand the company’s billing universe. Last, with respect to Rayaldee, it is currently initiating pre-commercialization activities in preparation for a November 2016 launch.”

“We now forecast quarterly revenue growth for BRLI for the remainder of 2016, and ~5% growth in the out years. Our 2016 revenue/EPS forecasts move to ~$1,274M/($0.03) (vs. prior ~$1,290M/($0.07)), while our 2017 revenue/EPS estimates move to $1,407M/$0.03 (vs. prior $1,290M/$0.04),” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rohit Vanjani has a yearly average return of 8.3% and a 53.7% success rate. Vanjani has an 69.2% average return when recommending OPK, and is ranked #393 out of 4105 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 54%, the stock’s consensus target price stands at $15.60.


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