Analysts Raised Target Price for Array Biopharma in March

Analysts’ recommendations and target price

Wall Street analysts expect an upside potential of 18.37% for Array Biopharma (ARRY) based on the company’s closing price on March 26. In 2019, analysts have revised upwards the company’s target price twice, from $25.91 in January to $26.82 in February and then to $27.90 in March. The current consensus analyst recommendation for the stock is a “buy.”

Analysts Raised Target Price for Array Biopharma in March

Of the 11 analysts covering Array Biopharma, five are recommending a “strong buy,” five are recommending a “buy,” and one analyst is recommending a “hold.”

On March 26, Array Biopharma closed at $23.57, 2.84% higher than its previous closing price, 87.66% higher than its 52-week low of $12.56, and 4.81% lower than its 52-week high of $24.76. The company’s market capitalization is $5.49 billion.

Based on its closing price on March 26, Array Biopharma reported returns of -2.80% in the last week, 0.34% in the last month, and 73.44% in the last quarter. The company reported returns of 54.05% in the last half year, 42.85% in the last year, and 65.40% YTD.

Growth trends

In the second quarter of its fiscal year 2019, which ends in June 2019, Array Biopharma reported revenues of $82.55 million, a YoY rise of 95.53% and above the consensus estimate by $30.10 million. The company reported non-GAAP EPS of -$0.05, which was higher than the consensus estimate by $0.12.

According to the company’s earnings conference call, recently launched BRAF-mutant melanoma drugs Mektovi and Braftovi reported net product sales of $23 million in the second quarter of fiscal 2019, which was quarter-over-quarter growth of 62%. The company reported total prescriptions of more than 2,600 for Mektovi and Braftovi in the second quarter of fiscal 2019, while total prescriptions to date are close to 4,000. According to the company’s earnings conference call, rapid penetration of these drugs in the US melanoma market coupled with increasing adoption in the European melanoma indication are expected to prove to be major growth drivers for Array Biopharma in future years.