UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Alexion Pharmaceuticals on Better aHUS Sales
In a report published Friday, Bank of America reiterated its Buy rating on Alexion Pharmaceuticals (NASDAQ: ALXN), and raised its price target from $120.00 to $124.00.
Bank of America noted, “While shares may be capped in 1H13 pending greater proof of sales upside which is likely to be more visible to investors in 2H13, we believe there were three important takeaways from the earnings call that were not appreciated: (1) estimated aHUS sales trends point towards a faster sales launch relative to PNH based on the 52% yr/yr growth (2) the feared systemic reimbursement concerns in Europe for Soliris in aHUS appear unfounded based on progress to date (3) sales from emerging markets are impressive and underscore the power of the global launch model, now at 50% of the US, and poised to eclipse Japan in 2013. While bears will point to ALXN's above sector average PE multiple (26x fully taxed 2014E EPS), the implied multiple on outer years (19x 2015E, 16x 2016E) on ALXN's 30%+ topline growth, and likelihood for sales upside gives us confidence that ALXN remains an attractive long term growth stock.”
Alexion Pharmaceuticals closed on Thursday at $87.63.
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