On Monday, Evercore ISI initiated coverage on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) with an Outperform rating and a stock price target of $113.00. The firm highlighted the potential operational and strategic impact of new leadership and investor activism, particularly by Elliott Management, on the company's future.
BioMarin's drug Voxzogo, which is used to treat achondroplasia, a form of dwarfism, is expected to continue as a key growth driver for the company. Evercore ISI has conservatively forecasted peak sales for Voxzogo to reach approximately $1.5 billion.
The analyst also noted that the early launch of Roctavian, a gene therapy for Hemophilia A, did not meet expectations. Still, current market expectations are considered modest, and the firm has modeled peak sales for Roctavian at around $300 million.
In addition to the potential of these drugs, the firm emphasized the importance of BioMarin's base business. The analyst suggested that the base business could generate over $2 billion in stable sales for the company in the coming years.
The coverage initiation and positive outlook reflect a confidence in BioMarin's portfolio and the strategic moves being made within the company. The new stock price target of $113.00 represents a significant potential upside from the company's recent trading prices.
InvestingPro Insights
As BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) garners analyst optimism, real-time data from InvestingPro provides a deeper financial perspective. With a market capitalization of $15.29 billion and a high P/E ratio of 74.01, BioMarin's valuation reflects expectations of future earnings growth.
Notably, the company's PEG ratio stands at a low 0.4, suggesting that its earnings growth may not be fully reflected in its current share price. Moreover, BioMarin's revenue has shown a robust increase over the last twelve months as of Q1 2024, with a growth rate of 13.74%, indicating a strong operational performance.
From the array of InvestingPro Tips, two are particularly relevant in light of the article's context. Firstly, analysts have revised their earnings downwards for the upcoming period, which could temper expectations despite the positive coverage initiation by Evercore ISI.
Secondly, BioMarin is trading at a high EBITDA valuation multiple, which could imply that the market has high expectations for the company's earnings before interest, taxes, depreciation, and amortization. These insights, along with many more, are available on InvestingPro, where users can find an additional 11 InvestingPro Tips for BioMarin. Investors interested in a deeper dive can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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