uploads/2016/06/ANR-13.png

The Word on the Street: How Analysts See BioMarin Now

By

Updated

BioMarin’s analyst recommendations 

BioMarin Pharmaceuticals (BMRN) is based in San Rafael, California. It’s a growth-stage biotechnology company that is focused on life-threatening rare genetic diseases. For a better understanding of BioMarin’s revenue and its sources, check out “BioMarin’s Business Model and Its 3 Sources of Revenue.”

The above table details 18 brokerage firms and their estimated target prices for BioMarin. The consensus 12-month target price for the company is $111.5. This translates to a ~41.9% return, as compared to BioMarin’s closing price of $78.56 on June 24, 2016.

According to Bloomberg’s consensus of 20 brokerage firms on June 27, 2016, 90% of analysts recommend the stock as a “buy,” and the remaining 10% of analysts have issued a “hold” rating for the company.

Article continues below advertisement

Analyst recommendations for peers

According to Bloomberg’s survey of 22 analysts as on June 27, 2016, 71.4% analysts issued a “buy” rating for Alexion (ALXN), whereas 28.6% suggested that the stock is a “hold.” None of the analysts recommend a “sell.” The stock presents a one-year return potential of 66%.

Of the 25 analysts in Bloomberg’s consensus on June 27, 2016, 52% believed Amgen (AMGN) should be a “buy,” whereas 48% recommend a “hold.” About 3.8% issued a “sell” rating for Amgen. AMGN’s 12-month return potential is ~26.3%.

Bloomberg’s consensus of 26 analysts on June 27, 2016, indicated that 76.9% of analysts issued a “buy” rating for Celgene (CELG), whereas 19.2% recommend a “hold.” The remaining 3.8% of analysts suggest a “sell.” According to Wall Street analysts, the stock presents a one-year return potential of 39.4%.

These analyst estimates help investors to understand financial expert opinions. But direct investment in a stock can still be risky because multiple events can cause volatility in a stock’s price. To avoid this kind of risk with the equity of BioMarin, risk-averse investors can explore options such as the PowerShares QQQ (QQQ), which has 0.24% of its total holdings in BioMarin.

Advertisement

More From Market Realist