UPDATE: BMO Capital Markets Upgrades Tesaro
In a report published Tuesday, BMO Capital Markets analyst Jim Birchenough upgraded Tesaro (NASDAQ: TSRO) to Outperform from Market Perform, raising its price target to $46.00 from $36.00.
According to the report, the upgrade follows the analyst's meeting with management. With an opportunity to contract at a discount with major oncology networks, practice groups, hospitals and unopposed by competitor EMEND, analysts believe that a significant opportunity exists for rolapitant within NCCN treatment guidelines.
“We are raising our rating on TSRO to Outperform and increasing our price target to $46 following our meeting with management,” the report noted. “With an opportunity to contract at a discount with major oncology networks/practice groups/hospitals, and unopposed by competitor EMEND, we believe that a significant opportunity exists for rolapitant within NCCN treatment guidelines. Indeed, with only 20% of recommended patients treated with an NK-1 antagonist, we see $1 billion-plus opportunity for the category and are conservatively increasing our peak sales estimate to $400 million. Additional upside potential could emerge from large contracts on rolapitant approval, IV development, and pipeline progress, particularly with PARP inhibitor niraparib. While PARPi development in breast and ovarian Ca is crowded, we are impressed with broader niraparib potential in NSCLC, SCLC, and prostate Ca.”
TSRO closed Friday at $32.82 with shares trading up at 1.89 percent.
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