Celgene (CELG) PT Lifted at Nomura Post Q1

Nomura Securities analyst M. Ian Somaiya reiterated a Buy rating on Celgene (NASDAQ: CELG) and boosted his price target to $252.00 (from $248.00) following Q1 results, saying buyback trumps seasonality.

Somaiya commented, "We are raising EPS estimates and target price to $252 from $248, as Celgene continues to return cash to shareholders through a hefty stock repurchase in 1Q and authorization of another $4bn for future share buybacks. We continue to believe long-term guidance remains conservative, with our 2017 Revlimid estimate $1.2bn over guidance of $7bn. Near term, we expect the May 15th Markman hearing on Revlimid’s patent infringement lawsuit to cause volatility in shares. We believe a court decision in favor of Celgene’s versions of claim construction or acceptance of its unclean hands defense could result in a favorable settlement or dismissal, removing a significant overhang to CELG shares."

FY14E EPS at $7.27; FY15E EPS at $9.76.

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 $141.25 yesterday.

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