BTIG Initiates Coverage On Alexion Pharmaceuticals

Loading...
Loading...

BTIG initiated coverage on Alexion Pharmaceuticals, Inc. ALXN Monday with a Buy rating and $250 price target.

Analyst Hartaj Singh believed the “current valuation reflects a quality company but does not account for what we believe will be rapid top & bottom line estimate increases over the next 2-5 years. We are 8-16 percent above consensus sales and 12-20 percent above consensus EPS in 2015-18.”

Singh claimed that “consensus for 2015-19 is underestimating the rate of patient additions for aHUS and the continuing strength of PNH in the US/EU.”

“We are $260m above 2018 consensus sales of $403m for asfotase alfa as we believe that consensus is underestimating the size of the prevalent pool in hypophosphatasia post-treatment. Currently the mortality rate is 50 percent within 12 months post-diagnosis,” according to Singh.

“Alexion’s keen focus on costs will manifest itself in above-consensus operating leverage. The adjusted EBITDA margin jumped by 290bps in 2013 and we expect a 490bps increase in 2014. By 2019, we expect it to approach the high 50’s.”

The price target was based “on a blended DCF and 2016 P/E multiple approach” and assigned “a 30X terminal multiple to the DCF and 2016 EPS.”  

Alexion Pharmaceuticals, Inc. closed at $182.17 Monday, down 2.37 percent.
 

Loading...
Loading...
Posted In: Price TargetInitiationAnalyst RatingsbtigHartaj Singh
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...