Nomura Securities Downgrades Alexion Pharmaceuticals (ALXN) to Neutral

Nomura Securities downgraded Alexion Pharmaceuticals (NASDAQ: ALXN) from Buy to Neutral with a price target of $223.00 (from $224.00) on valuation.

Analyst M. Ian Somaiya commented, "Our downgrade is based on valuation as shares have approached our TP. Our lower TP reflects expectation for currency headwinds (2.15%) in the EU and (1%) Japan. While we believe Alexion’s unique business model provides increased patient loyalty, the business model comes with higher-than-typical administrative/marketing cost. Thus, despite having revenue estimates that are slightly higher than the Street’s, our above-consensus spending estimates result in increasing divergence with Street earnings estimates starting in 2016 (Nomura: $7.05 vs. Street $7.38). We look to get more constructive on shares following confirmation of strong Asfotase alfa launch and as visibility on line extensions to Soliris (both in 2H15) confirm our view that the company offers one of the most sustainable
franchises in biotech."

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

Shares of Alexion Pharmaceuticals closed at $186.60 yesterday.

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