This came off my Schwab News feed. It looks very good.
Nomura Securities analyst M. Ian Somaiya reiterated a Buy rating on Celgene (NASDAQ: CELG) while boost his price target to $150.00 (from $135.00). The analyst named the stock his top large cap biotech pick for 2015.
Somaiya commented, “We are increasing our target price to $150 from $136, ahead of the likely approval of Revlimid for frontline/maintenance MM in the U.S. (2/22/15 PDUFA) and EU (1Q15) and increased pipeline visibility that point to upside to long-term Street estimates. We believe approval of Revlimid for frontline/continuous use in 1H15 should reinvigorate sales while the new patent on Revlimid could sustain the franchise until 2030 and eliminate generic threats. We expect upwardrevisions to Celgene s 2015 and 2017 guidance, as well as introduction of 2020 guidance, when an update is provided in January 2015. Last, we believe pipeline data, which include Revlimid in lymphoma, Pomalyst in second-line multiple myeloma, and multiple partnership studies, should provide visibility on 25% EPS growth through 2025. We believe lymphoma is the single-biggest opportunity in Celgene s pipeline, with an 80% probability of being realized. We expect positive data from Phase III trials in DLBCL (REMARC) in 2H15 and FL (RELEVANCE) in 2017 to add $4bn to our model.”