Analysts’ recommendations and target price
Wall Street analysts expect an upside potential of 11.65% for Horizon Pharma (HZNP) based on the company’s closing price on March 25. In 2019, analysts have revised upwards the company’s target price from $25.27 in January and February to $30.00 in March. The current consensus analyst recommendation for the stock is a “buy.”
Of the ten analysts covering Horizon Pharma, two are recommending a “strong buy,” five are recommending a “buy,” and the remaining two analysts are recommending a “hold.” The highest target price estimate for the company is $38, and the lowest is $21.
On March 25, Horizon Pharma closed at $26.87, 0.11% higher than its previous closing price, 114.09% higher than its 52-week low of $12.55, and 8.73% lower than its 52-week high of $29.44. The company’s market capitalization is $5.06 billion.
Based on its closing price on March 25, Horizon Pharma has reported returns of -2.86% in the last week, 26.75% in the last month, and 42.24% in the last quarter. The company has reported returns of 42.62% in the last half year, 90.03% in the last year, and 37.51% YTD.
Why analysts are favoring Horizon Pharma
In its fourth-quarter results announced on February 27, Horizon Pharma reported fourth-quarter revenues of $355.54 million, a YoY decline of 29.66% and higher than the consensus estimate by $21.32 million. The company reported non-GAAP EPS of $0.67, which was a YoY rise of 131.03% and higher than the consensus estimate by $0.13.
On February 28, the company issued a press release announcing positive top-line results from the Phase 3 confirmatory trial evaluating investigational therapy Teprotumumab in the active TED (thyroid eye disease) indication. According to the press release, there are no FDA approved therapies for TED, and it has an incidence of 15,000–20,000 in the US. These positive outcomes led to the company’s stock price rising 38.87% from $20.89 on February 26 to $29.01 on February 28.