Analysts Respond To Pharmacyclics' Q4 Results

Pharmacyclics, Inc. PCYC reported Q4 results on Wednesday and posted adjusted of EPS $0.96, above estimates of $0.76, on revenues of $290.2 million. The company also reaffirmed its fiscal 2015 outlook.

JP Morgan analyst Cory Kasimov felt that the company’s long-term future looked bright, however, the stock’s valuation prompted the firm to “step to the sidelines.” Kasimov downgraded the stock from Overweight to Neutral.

Nomura analyst M. Ian Somaiya, to a different view, upgraded the stock from Neutral to Buy. Somaiya added that “upside to consensus US revenue estimates combined with a strong launch in Europe and multiple clinical data readouts that could guide label expansion opportunities in the future support our upgrade.”

Stifel analyst Brian Klein stated that with “Zydelig's 4Q14 print of $16M in the U.S., we see the greater than 10-times comparative Imbruvica sales margin supporting our belief that Imbruvica is the established SOC for R/R CLL.”

Klein maintained a Hold rating on the stock and believed “that 2015 could be a transformational year for PCYC as it seeks to shift from the limited relapsed and refractory CLL market to the larger heme-onc space, including front-line CLL and NHL.”

Pharmacyclics recently traded at $170.51, up 0.18 percent.