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Intercept Pharmaceuticals’ Stock Price Rose 17.94% on August 6

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Stock performance

On August 6, Intercept Pharmaceuticals’ (ICPT) stock price grew ~17.94% to $114.71—compared to the previous day’s closing price of $97.26. On August 6, Intercept Pharmaceuticals’ stock price closed at $114.71, which represents ~125% growth from its 52-week low of $51.05 on February 9.

On August 2, Intercept Pharmaceuticals’ stock price grew 9.86% to $100.83 from the previous day’s close of $91.78.

Notably, Intercept Pharmaceuticals hit its 52-week high of $121.92 in September 2017.

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Reason for the hike

On August 6, Intercept Pharmaceuticals received a favorable view from Goldman Sachs and Wedbush. Goldman Sach’s analyst upgraded its recommendation from “sell” to “buy” for Intercept Pharmaceuticals. Wedbush increased its target price for Intercept Pharmaceutical stock from $203 to $217.

On August 2, Intercept Pharmaceuticals reported its second-quarter earnings results. In the second quarter, Intercept Pharmaceuticals generated net revenues of $43.58, which represents ~41.08% YoY (year-over-year) growth and 21% growth sequentially.

The company’s revenues were mainly from Ocaliva sales. Ocaliva generated revenues of $43.2 million, which includes revenues of $34.5 million from US sales and $8.7 million from international sales. In the second quarter of 2017, Ocaliva generated revenues of $27.9 million and $2.6 million from US markets and international markets, respectively.

In the second quarter, Intercept Pharmaceuticals reported a net loss of $75.2 million—compared to a net loss of $86.6 million in the second quarter of 2017.

Intercept Pharmaceuticals expects Ocaliva’s fiscal 2018 revenues to be $170.0 million–$185.0 million.

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Analysts’ recommendations

Of 17 analysts tracking Intercept Pharmaceuticals in August, four analysts recommended a “strong buy,” four analysts recommended a “buy,” eight analysts recommended a “hold,” and one analyst recommended “sell.”

On August 7, Intercept Pharmaceuticals had a consensus 12-month target price of $123.07, which represents an ~7.29% return on investment over the next 12 months.

Peers’ ratings

In August, of the eight analysts tracking Madrigal Pharmaceuticals (MDGL), ~63% of the analysts recommended a “buy.” Among the ten analysts tracking Agios Pharmaceuticals (AGIO), ~80% of the analysts recommended a “buy.”

On August 6, Madrigal Pharmaceuticals and Agios Pharmaceuticals had consensus 12-month target prices of $321.71 and $103.71, respectively, which represents an ~29.94% and ~29.73% return on investment over the next 12 months.

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