Post by tomsylver on Jun 26, 2017 20:04:12 GMT
Oppenheimer analyst Jay Olson weighs in on shares of Portola Pharmaceuticals Inc (NASDAQ:PTLA) after the drug maker received FDA approval for betrixaban to prevent venous thromboembolism (VTE) in adult patients hospitalized for an acute medical illness who are at risk. The analyst reiterates an Outperform rating on the stock, while boosting the price target to $66.00 (from $46.00), which represents a potential upside of 19% from where PTLA is currently trading.
Olson commented, "We are bullish on the factor Xa inhibitor market in general and the potential for reversal of these drugs. The market for factor Xa inhibitors in the US grew 35% to ~14M TRx's in 2016 according to Symphony Health data. We expect the US market to continue with double digit annual growth reaching ~60M TRx's by 2025E."
"With the Byvexxa approval, we update our PTLA model [...] These changes result in revenue and EPS increases from 2017E to 2025E. As a result of these increases, our PTLA price target increases to $66 and is based on a DCF with 10% WACC and -15% residual growth rate post 2030 due to patent expirations," the analyst added.
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Jay Olson has a yearly average return of 10.6% and a 65.5% success rate. Olson has a 48.2% average return when recommending PTLA, and is ranked #772 out of 4592 analysts.
Out of the 7 analysts polled by TipRanks (in the past 12 months), 5 rate Portola stock a Buy, while 2 rate the stock a Hold. With a return potential of 5%, the stock's consensus target price stands at $58.33
Olson commented, "We are bullish on the factor Xa inhibitor market in general and the potential for reversal of these drugs. The market for factor Xa inhibitors in the US grew 35% to ~14M TRx's in 2016 according to Symphony Health data. We expect the US market to continue with double digit annual growth reaching ~60M TRx's by 2025E."
"With the Byvexxa approval, we update our PTLA model [...] These changes result in revenue and EPS increases from 2017E to 2025E. As a result of these increases, our PTLA price target increases to $66 and is based on a DCF with 10% WACC and -15% residual growth rate post 2030 due to patent expirations," the analyst added.
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Jay Olson has a yearly average return of 10.6% and a 65.5% success rate. Olson has a 48.2% average return when recommending PTLA, and is ranked #772 out of 4592 analysts.
Out of the 7 analysts polled by TipRanks (in the past 12 months), 5 rate Portola stock a Buy, while 2 rate the stock a Hold. With a return potential of 5%, the stock's consensus target price stands at $58.33
