Read original blog entry
Celgene Corp. (CELG) is a fully integrated biotechnology company focused on discovery, development and commercialization of drugs in the area of cancer and immune/inflammatory diseases. The acquisition of Pharmion brings three medically meaningful products -- Thalomid, Revlimid and Vidaza -- into market for hematology and oncology, which will drive growth in 2008 and beyond.
However, we are concerned about the tough competition from Velcade and other products for MDS and MM. Label expansion on Revlimid and Vidaza into other hematological cancers should offer upside for Celgene.
We believe all this is currently reflected in the stock. We maintain our Hold rating on Celgene shares with a price target of $60. Celgene has all the makings of a Buy-rated stock such as solid new product story, decent pipeline and incredible 84% four year earnings growth. Our target price corresponds to a 45.5x P/E to our estimated 2008 EPS of $1.32, 31x P/E to 2009 EPS of $1.92 and 27x P/E to 2010 EPS of $2.24.
Read the full analyst report on CELG
Get real-time market insights and profitable stock recommendations from the team of analysts at Zacks Equity Research. See all todays Analyst Blog entries on Zacks.com.