Maxim analyst Jason Kolbert slashes his price target on shares of Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) to $5.00 (from $8.00), after the drug maker failed to impress investors with disappointing results from its ongoing phase 2 ‘604 Study’ in HCV-3. However, the analyst keeps his rating for ACHN at Buy.
Kolbert commented, “The suggestion is that Johnson & Johnson is likely to move forward with this regimen (allowing Achillion to realize milestones). How competitive JNJ will be exactly is a big guess? As such we are removing any royalties from our model which lowers our price target.”
“We see Achillion’s role in the HCV landscape through JNJ as ever at risk as others dominate the landscape with near perfect regimens. As such we believe it’s prudent to remove our assumptions around royalties,” the analyst added.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -11.9% and a 32% success rate. Kolbert has a -34.2% average return when recommending ACHN, and is ranked #4503 out of 4557 analysts.
Out of the five analysts polled by TipRanks in the past three months, four rate Achillion stock a Buy, while only one rates the stock a Hold. With a return potential of 91%, the stock’s consensus target price stands at $6.13.