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What Are Analysts Saying about Horizon Pharma?

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Share price estimates for Horizon

According to a Thomson Reuters Eikon consensus of six brokerage firms on December 17, 2016, 83.3% of the firms rated Horizon Pharma (HZNP) a “buy.” Of those, 50.0% were a “strong buy,” and 30.3% were a “buy.” About 16.7% of the firms rated Horizon a “hold.”

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Mean target price for Horizon stock

The mean target price for Horizon Pharma on December 17, 2016, was $28.25. That represents a return potential of ~71.8% over its closing price of $16.44 on December 16, 2016.

Horizon’s market capitalization on December 16 was $2.7 billion. With the expansion of its Primary Care drugs, Horizon is expected to record robust revenue growth in 2017. Its major drugs still haven’t reached their peak sales.

Actimmune in combination with checkpoint inhibitors presents an opportunity for $300.0 million–$500.0 million in sales. Krystexxa is believed to have an annual peak sales potential of more than $250.0 million. Considering the sales potential for the pipeline and with $1.0 billion in sales in 2016, Horizon Pharma seems to be at a discount. Some believe it could be a good investment opportunity.

To get exposure to Horizon and control excessive company-specific risks, you can invest in the ProShares Ultra Nasdaq Biotechnology (BIB). Horizon accounts for 0.40% of BIB’s total holdings.

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Analyst recommendations for peers

According to a Reuters survey of 21 analysts on December 17, 2016, 61.9% of analysts have issued a “buy” rating for Endo International (ENDP). Of those analysts, about 23.8% gave it a “strong buy,” and 38.1% gave it a “buy.” Another 38.1% rated ENDP stock a “hold.” ENDP has a return potential of 47.1% over the next 12 months from its closing price on December 16.

Of the 22 analysts in a Reuters consensus dated December 17, 2016, 77.3% believed Alexion (ALXN) should be a “buy,” and 22.7% recommended a “hold.” With 40.9% “strong buy” ratings and 36.4% “buy” recommendations, ALXN had a mean target price of $170 on December 17, 2016, representing an opportunity to earn 41.6% over its closing price on December 16.

A Reuters consensus of 17 analysts on December 17, 2016, showed that 82.4% of the analysts issued a “buy” rating for Jazz Pharmaceuticals (JAZZ), and 17.6% recommended a “hold.” About 41.2% recommended a “buy,” and 41.2% recommended a “strong buy.” The mean target price for JAZZ on December 17 was $173.71. JAZZ presents an opportunity to earn 64.8% over the next 12 months.

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