H.C. Wainwright analyst Yi Chen has reiterated their bullish stance on OPK stock, giving a Buy rating yesterday.
Yi Chen’s Buy rating for Opko Health is based on a multitude of factors primarily revolving around the company’s financial results and future plans. Despite a slight year-on-year decline, Opko Health’s 3Q23 consolidated total revenues of $178.6M exceeded the projection of $172.0M. The increased revenue from pharmaceutical products, which rose from $32.4M in 3Q22 to $40.7M in 3Q23, played a significant role. Factors like foreign currency exchange fluctuations and increased sales of Rayaldee contributed to this growth. Furthermore, the revenue generated from the transfer of intellectual property was a notable $6.2M.
The company’s diagnostics services division, BioReference, despite experiencing a dip in revenue, is implementing initiatives to reduce costs, enhance productivity and expand into higher value specialty testing segments and the pharmaceutical market. There is potential for this division to return to profitability by 2024. Also, the company’s partnership with SOPHiA GENETICS, making BioReference the first commercial laboratory globally to adopt liquid biopsy assay, is a promising development. Finally, a research collaboration agreement with Entera Bio to develop oral peptide tablet formulations for obesity and intestinal malabsorption syndromes adds another positive dimension to Opko Health’s prospects. This is why Yi Chen reiterates a Buy rating for Opko Health.
In another report released yesterday, Piper Sandler also reiterated a Buy rating on the stock with a $5.00 price target.
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Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OPK in relation to earlier this year.
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Opko Health (OPK) Company Description:
OPKO Health, Inc. engages in the provision of healthcare services. It operates through the Diagnostics and Pharmaceuticals segments. The Diagnostics segment comprises clinical laboratory operations which acquired through the Bio-Reference and point-of-care operations. The Pharmaceuticals segment includes the pharmaceutical operations acquired in Chile, Mexico, Ireland, Israel, and Spain; and pharmaceutical research and development operations. The company was founded in October 1991 and is headquartered in Miami, FL.
Read More on OPK:
- OPKO Health Reports Third Quarter 2023 Business Highlights and Financial Results
- Opko Health reports Q3 EPS (11c), consensus (10c)
- Options Volatility and Implied Earnings Moves Today, November 06, 2023
- New Clinical Data on OPKO Health’s RAYALDEE® (ER Calcifediol) Presented at Kidney Week 2023
- Opko Health presents new data on RAYALDEE at Kidney Week 2023
