Leerink Partners Starts ARIAD Pharmaceuticals (ARIA) at Outperform

September 26, 2016 6:36 AM EDT
Get Alerts ARIA Hot Sheet
Price: $9.51 +1.49%

Rating Summary:
    13 Buy, 9 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 23 | New: 30
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Leerink Partners initiates coverage on ARIAD Pharmaceuticals (NASDAQ: ARIA) with a Outperform rating and a price target of $20.00.

Analyst Michael Schmidt commented, "Despite recent strong stock performance, ARIA shares still trade at a discount to other commercial stage Oncology Biotech companies while the top line is expected to grow above that of its peers with a 35% 2016-18E CAGR. Based on discussions with MEDACorp KOLs and our analysis of the CML market, we expect Iclusig to deliver above consensus sales growth over the next 3 years while Street expectations for the company's pipeline products are still low. Driven by a best-in-class product profile, we believe brigatinib is well positioned to exceed commercial expectations in ALK+ NSCLC, while AP32788, the company’s differentiated EGFR inhibitor, represents what we view as a free source of upside with Ph I data expected in mid-’17. ARIA’s new management team has positioned a leaner, more focused company for commercial execution in the US while also maintaining future strategic flexibility. Our conservative $20 per share DCF-based price target attributes $10 to Iclusig and $10 to brigatinib."

For an analyst ratings summary and ratings history on ARIAD Pharmaceuticals click here. For more ratings news on ARIAD Pharmaceuticals click here.

Shares of ARIAD Pharmaceuticals closed at $13.52 yesterday.

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