Market Overview

Bernstein: Alexion Pharma An Outperform, Worth $267/Share


In a report published Tuesday, Bernstein analyst Geoffrey C. Porges reiterated an Outperform rating on Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), with a price target of $267.

Alexion has closed the acquisition of Synageva Biopharma Corp (NASDAQ: GEVA). Following the completion of the deal, analyst Geoffrey Porges expects Alexion to deliver combined non-GAAP EPS of $6.33 in 2016, $8.50 in 2017, and $10.78 in 2018. The estimates reflect expectations for the Kanuma launch.

Porges expects the combined company to generate 19-24 percent top line organic growth in 2016-2017. This rate could slow to the mid-teens through 2020, while non-GAAP EPS growth is expected to accelerate to around 20 percent on an annualized basis through 2020, backed by cost synergies and "as the company applies its commercialization expertise in rare disease therapeutics to Kanuma."

"We now estimate that the deal will be, on a non-GAAP EPS basis, accretive to ALXN's 2018 results," Porges wrote.

Moreover, Alexion has announced an addition to its share buyback plan, taking the total to $1bn. "Assuming an average share repurchase price at the midpoint of its closing price of $184.40 on June 19, 2015 and our target price of $267/share, Alexion could potentially repurchase 4.4mm shares over the next few years, out an estimated 226mm diluted shares outstanding following the acquisition," the Bernstein report added.

Latest Ratings for ALXN

Apr 2019Raymond JamesReinstatesOutperform
Feb 2019GuggenheimInitiates Coverage OnNeutral
Feb 2019Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for ALXN
View the Latest Analyst Ratings

Posted-In: BernsteinAnalyst Color Reiteration Analyst Ratings


Related Articles (ALXN + GEVA)

View Comments and Join the Discussion!

Latest Ratings

AGENB. Riley FBRInitiates Coverage On5.0
DTILGoldman SachsInitiates Coverage On24.0
DTILBarclaysInitiates Coverage On24.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Nomura Downgrades Molson Coors Brewing To Neutral

JP Morgan Downgrades Western Digital To Neutral