Goldman Sachs Starts Cubist Pharmaceuticals (CBST) at Conviction Buy, Sees 24% Upside

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Goldman Sachs initiates coverage on Cubist Pharmaceuticals (NASDAQ: CBST) with a Conviction Buy List rating and $54 price target, suggesting 24% upside.

The firm highlight that Cubist is a profitable mid-cap biotechnology company with two marketed drugs ($925mn 2012E revenue) and a late-stage pipeline (three drugs in Phase 3, Ph3, by YE2012).

"In our view, the key driver of shares is pipeline drug CXA for hospital-acquired infections, for which we expect positive Ph3 data in 2H13. We project that CXA’s
expected launch in 2H14 will help drive outer-year growth (we model 2013-
2016E EPS CAGR of 20%)," the analyst comments.

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

Shares of Cubist Pharmaceuticals closed at $43.49 yesterday, with a 52 week range of $28.82-$44.95.

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