UPDATE: Oppenheimer Holdings Downgrades Celgene Corporation to Perform, Removes PT

In a report published Monday, Oppenheimer Holdings downgraded its rating on Celgene Corporation

from Outperform to Perform, and removed its $77.00 price target. Oppenheimer noted, “We are downgrading Celgene from Outperform to Perform and removing our $77 price target. We believe that the company is trading in line with its peers (15x our 2014E GAAP EPS of $5.36). Although we estimate Revlimid will grow 14%/yr over the next three years, we believe that Celgene is likely to make several substantial acquisitions over the next 1-2 years in order to extend top-line growth beyond Revlimid. We analyzed Celgene's acquisitions of Pharmion, Abraxis, and Gloucester and came to the conclusion that these acquisitions had limited, if any, return based on the acquisition price. Given the recent strong performance for the entire biotech sector, we believe that it will be more difficult for Celgene to find good acquisitions.” Celgene Corporation closed on Friday at $78.42.