Nomura Securities Starts Celgene (CELG) at Buy

January 8, 2014 7:46 AM EST Send to a Friend
Get Alerts CELG Hot Sheet
Price: $113.50 -3.14%

Rating Summary:
    22 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
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Nomura Securities initiates coverage on Celgene (NASDAQ: CELG) with a Buy. PT $236.00.

"Celgene is focused on development of therapeutic drugs for hematological malignancies, solid tumors, and autoimmune diseases," analyst Ian Somaiya comments. "We believe Celgene’s blockbuster drug, Revlimid for multiple myeloma (MM), is less than a third of the way to realizing its peak sales potential – 2013E sales of $4.3bn vs. peak of >$14bn. Presentation of Phase III MM-020 data (ASH 2013) not only provided investors with a road map to regulatory approval for frontline/continuous use, a $6bn-8bn opportunity, but also addressed concerns related to second primary malignancies and use in patients with renal impairment, reducing volatility in shares. Our $236 target price is based on DCF of 2015-20E free cash flows discounted at 10% (WACC of 9.3%) with a 6% terminal growth rate. FY13E EPS at $6.02; FY14E EPS at $6.94."

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

Shares of Celgene closed at $164.61 yesterday.


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