BMO takes the top spot for now - "We reiterate our Outperform rating and are increasing our price target on CELG to $180 following better-than-expected 2Q13 results"
Solid 2Q13 With Potential for Growth Acceleration
Celgene reported 2Q13 operating results earlier today and provided an update on key initiatives for its heme/Onc franchise and broader pipeline. Overall results were better than expected with non-GAAP EPS of $1.52 vs. $1.44 consensus and above consensus sales for key products REVLIMID, POMALYST, and ABRAXANE. Better-than-expected sales for REVLIMID were demand based and driven by increased market share and dosing duration across global territories, and was said to actually benefit from availability of POMALYST. Accelerating ABRAXANE sales were supported by label expansion to NSCLC and could benefit from potential approval in pancreatic Ca by year-end 2013. Importantly CELG maintained guidance to file for REVLIMID label expansion for frontline maintenance use in the US and EU based on positive MM-020 results and supportive data from other maintenance studies.
We reiterate our Outperform rating and are increasing our price target on CELG to $180 following better-than-expected 2Q13 results. With increasing market share and dosing duration for REVLIMID and potential expansion to frontline use ex- US, we expect top- and bottom-line growth acceleration over the next several years. Strong performance of ABRAXANE and POMALYST provides for a more diversified revenue base, and CELG retains multiple drivers of long-term sustainable earnings growth.
Our 2013 non-GAAP EPS estimate is $5.86.
$180 target based on 25x 2016 non-GAAP EPS estimate of $11.23, discounted 20%.
We maintain an Outperform rating on CELG.
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