Cantor Bets on Opko Health Inc. (OPK); Sees 240% Upside

Looking for a reason to buy shares of Opko Health Inc. (NASDAQ:OPK)? How about three reasons, courtesy of Cantor analyst Louise Chen.

Chen initiated coverage of Opko Health’s stock with a Buy rating and price target of $20, which implies an upside of 240% from current levels. The analyst highlighted three factors to support his bullish stance:

  1. Expect Rayaldee Sales to Pick Up the Pace – Sales force expansion for Rayaldee is under way, and OPK has made substantial progress in obtaining formulary access for Rayaldee.
  2. Robust Drug Pipeline Advancing Toward Commercialization – OPK expects to initiate five Phase 2 clinical trials in 2H17 and early-2018.
  3. BioReference Sales Potential Is Underappreciated – BioReference sales potential is unBioReference Laboratories seems well-positioned to accelerate revenue growth and expand operating margins through 2H17 and 2018, given that OPK’s continued investment in new systems provides better financial data and more information about customers, products and sales.

Chen concluded, “We think that the sales and earnings potential of the company’s business is underappreciated and that upward earnings revisions to levels not reflected in consensus expectations should drive the stock higher.” (To watch Chen’s track record, click here)

Out of the 6 analysts polled in the past 12 months, 4 rate Opko Health stock a Buy, while 2 rate the stock a Hold. With a return potential of 146.6%, the stock’s consensus target price stands at $14.50.


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