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Analysts’ Recommendations for Celgene and Its Peers in 2016

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Analysts’ recommendations

Among the 30 brokerage companies surveyed by Bloomberg for Celgene (CELG), 78.6% gave it “buy” ratings, while 17.9% gave it “hold” ratings. Only 3.6% of analysts rated Celgene as a “sell.”

The consensus 12-month target price for Celgene is ~$137.17, which represents a rise of 20.5% from the stock’s price of $113.8 on August 9, 2016. In addition to Celgene’s existing portfolio, this strong guidance is based on the company’s aggressive stance in developing new investigational drugs through in-house capabilities and targeted partnerships.

In 2016, Celgene filed applications seeking regulatory approvals for four new investigational drugs. The company has also actively pursued key collaborations in the immuno-oncology area, such as those with Jounce Therapeutics, Juno, AstraZeneca, Lycera, bluebird bio, and Agios.

If Celgene’s share price manages to outperform its price target, it could also boost the share price of the iShares Nasdaq Biotechnology ETF (IBB). Celgene makes up about 8.4% of IBB’s total portfolio.

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Peer companies

Based on a Bloomberg survey of 29 brokerages, Gilead Sciences (GILD) received “buy” recommendations from 55.6% of analysts and “hold” recommendations from 44.4% of analysts. The consensus 12-month target price for Gilead Sciences is ~$105.0, which represents a rise of 32.4% from the stock’s price of $79.33 on August 9, 2016.

Among the 24 brokerages surveyed by Bloomberg for AbbVie (ABBV), 54.5% gave it “buy” ratings, while 40.9% gave it “hold” ratings. Only 4.5% of analysts rated AbbVie as a “sell.” The consensus 12-month target price for AbbVie is ~$71.06, which represents a rise of 6.4% from the stock’s price of $66.76 on August 9, 2016.

Among the 14 brokerages surveyed by Bloomberg for United Therapeutics (UTHR), 23.1% gave it “buy” ratings, while 69.2% gave it “hold” ratings. Only 7.7% of analysts rated United Therapeutics as a “sell.” The consensus 12-month target price for United Therapeutics is ~$129.5, which represents a rise of 3.3% from the stock’s price of $125.37 on August 9, 2016.

In the next article, we’ll analyze growth prospects for Celgene’s Revlimid in 2016.

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