Yahoo Finance What Are Analysts Recommending for BioMarin?
BioMarin Has Scored Some Big 'Buys,' but Why?
Analyst recommendations for BioMarin
California-based BioMarin Pharmaceutical (BMRN) is a biotechnology company focused on therapies for life-threatening rare genetic diseases. The company had a market capitalization of $13.9 billion as of February 29, 2016.
The consensus 12-month target price for the company is $120.95. This translates to a ~47.7% return compared to BioMarin’s closing price of $81.87 on February 29, 2016.
Before its 2015 earnings release, about 78.9% of analysts recommended a “buy” for the company, but following impressive sales, analysts revised their estimates upwards. According to the Bloomberg consensus of 20 brokerage firms recorded on February 29, now 85% of analysts recommend a “buy” for BioMarin’s stock. The remaining 15% of analyst have issued a “hold” rating for the company. No analyst has recommended that BioMarin should be sold.
Analyst recommendations for peers
By comparison, according to a Bloomberg survey of 26 analysts on February 29, 2016, 57.7% of analysts issued a “buy” rating for Regeneron (REGN), whereas 42.3% suggested that the stock should be a “hold.” None of the analysts recommended a “sell” rating for Regeneron.
According to consensus, 50% of analysts believed Amgen (AMGN) should be a “buy,” whereas 46.2% recommended a “hold” rating for the company. Around 3.8% of the analysts have issued a “sell” rating for Amgen. For Celgene (CELG), 80.8% of analysts have issued “buy” rating, whereas 15.4% recommended that the stock should be a “hold,” and the remaining 3.8% suggested that the stock should be sold.
Direct investment in a company’s stock can still be risky because multiple events can cause volatility in stock price. To avoid such risks, you can invest in options such as the PowerShares QQQ (QQQ), which has about 0.28% of its total holdings in BioMarin stock.
Now let’s look at what may be driving BioMarin’s valuation.
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