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Cantor Fitzgerald Bumps Puma Biotechnology Price Target On Strong Nerlynx Sales

Priya Nigam

Puma Biotechnology Inc (NASDAQ: PBYI) announced fourth-quarter results and 2019 guidance Thursday that were ahead of expectations, boosting confidence in Nerlynx achieving a global product revenue estimate of $683 million in 2023, according to Cantor Fitzgerald.

The Analyst

Cantor Fitzgerald’s Alethia Young maintained an Overweight rating on Puma Biotechnology and raised the price target to $57.

The Thesis

The LA-based pharmaceutical company reported strong fourth-quarter results, with U.S. Nerlynx sales of $61 million handsomely beating the consensus expectation of $53 million. Puma Biotechnology guided to 2019 U.S. Nerlynx sales of $255-$280 million, exceeding the consensus estimate of $238 million.

This was the company’s first cash flow-positive quarter, recorded at around $8 million, Young said in a Thursday note.

Based on its performance in fourth-quarter, the annual run rate for the breast cancer drug is around $240 million, the analyst said. The 2019 guidance implies 6-17 percent growth, which could prove conservative, she said.

View more earnings on PBYI

“We expect the company will frame growth in terms of bottles from here on, as contribution from spec distribution channel seem to have increased,” Young said, projecting U.S. net sales of $269 million for 2019.

Price Action

Puma Biotechnology were rallying 36.14 percent higher to $37.86 at the time of publication Friday. 

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Latest Ratings for PBYI

Date Firm Action From To
Mar 2019 Citigroup Maintains Buy Buy
Jan 2019 Leerink Swann Initiates Coverage On Market Perform
Jan 2019 Guggenheim Downgrades Buy Neutral

View More Analyst Ratings for PBYI
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