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The small biotech sector largely gave up its two percent rally on Monday in trading on Tuesday. The sector continues to be in a deep bear market, down approximately 25% from its recent highs in early September. Here are two notable analyst calls that happened today we believe are worth paying attention to in the days and weeks ahead.
Cantor Fitzgerald reissued its Buy rating and $55 price target on Theravance Biopharma (TBPH) this afternoon with the following commentary.
We rate TBPH 12-month price target of $55. We believe the Street is underestimating the peak sales potential of its key development programs. Valuation Summary We use a blend of DCF and multiples (EV/EBITDA) analysis to get to our 12-month price target of $55. The Disclosure Section may be found on pages 3 – 4.Valuation We use a blend of DCF and multiples (EV/EBITDA) analysis to get to our 12-month price target of $55.”
We concur and have been adding some exposure on the dip in the market via Buy-Write orders. Theravance seems like a steal near $25 a share and is in The Biotech Forum model portfolio as well.
Oppenheimer thinks Celgene (CELG) is a huge buy. They reiterate their Buy rating and $163 price target along with providing their current view on this biotech stalwart.
The anticipated timing of the KarMMa study results and NDA filing could offer potential upside to our out-year estimates for bb2121, which are not currently included in our revenue estimates through 2022. With potential approval of bb2121 in 2020, and the positive data previously presented for bb2121 from the CRB-401 study in the late-stage relapsed/refractory multiple myeloma setting, we believe bb2121 could be successfully launched by 2021 and provide upside to our 2021 and 2022 revenue estimates for Celgene. Previously presented data for bb2121 demonstrated an impressive PFS, especially in the MRD-negative subset of patients.”
While Oppenheimer's price target is more than optimistic over the next 12 months, the shares are dirt cheap at under $70.00 a share. If sentiment improves on this space, we could easily see CELG regaining $90 to $100 a share in the coming year.
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