In a research report released yesterday evening, BTIG analyst Dane Leone initiated coverage on shares of Juno Therapeutics Inc (NASDAQ:JUNO) with a Sell rating and price target of $23, which implies a downside of 24% from current levels.
Leone commented, “Our market model puts us -$18m below the Street during 2020 for Juno’s current CD19 product roadmap, and specifically +$17m above for JCAR015 and -$36m below for JCAR017. We generally do not view our expectations as overly conservative, given our assumption of ~50% overall market penetration and equal share for the three companies (Juno, Kite, Novartis). Although Juno has the most robust dataset presented thus far, as compared to Kite and Novartis, we expect Juno to be 2nd or 3rd to market in every CD19 indication it is pursuing. Furthermore, given the limited datasets from any of the companies, it is difficult to parse out who could have the best product. As a result, we generally forecast Juno to have equivalent or lagging market share versus Kite and Novartis across the CD19 indications.”
“Our Fair Value Analysis for Juno’s current clinical programs and potential value of partnerships and collaborations suggests that the current trading price of ~$32 is significantly above fair value. Our Sell recommendation is based upon shares trading at our calculated fair value share price of $23,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dane Leone has a yearly average return of 9.9% and a 73% success rate. Leone is ranked #195 out of 4129 analysts.
Out of the 8 analysts polled by TipRanks (in the past 3 months), 4 rate Juno Therapeutics stock a Buy, 3 rate the stock a Hold and 1 recommends a Sell. With a return potential of 45%, the stock’s consensus target price stands at $43.43.