Leerink Partners analyst Andrew Berens has maintained their bearish stance on BPMC stock, giving a Sell rating on February 16.
Andrew Berens has rated Blueprint Medicines with a Sell due to a combination of factors pertaining to the company’s financial performance and future prospects. His assessment is grounded in the recent quarterly revenue beat, which fueled a significant stock rally. However, Berens expresses caution about the sustainability of the drug Ayvakit’s early success, pointing out that it’s too soon to accurately gauge the drug’s potential in a diverse disease landscape. Moreover, he is concerned about the company’s guidance for 2024, which hints at a potential deceleration in patient growth starting in the third quarter, raising questions about underlying weaknesses that may not yet be fully visible.
Additionally, Berens’ skepticism extends to the company’s operational decisions, including the termination and deprioritization of various oncology programs, which, while potentially reducing expenses, also narrow the company’s pipeline. Although the company anticipates a decrease in operating expenses and cash burn for 2024, there is an expected offset by an increase in selling, general and administrative costs. Berens has adjusted his model in line with these updates and aligns his Ayvakit sales forecast with the company’s guidance. Despite these updates, he remains unconvinced of the drug’s ability to meet the management’s ambitious sales target of $2 billion, setting his own peak sales expectation significantly lower. This difference in sales projection underlies his decision to maintain a Sell rating, reflecting his concerns about the drug’s market performance and Blueprint Medicines’ valuation.
Berens covers the Healthcare sector, focusing on stocks such as AstraZeneca, Incyte, and Agios Pharma. According to TipRanks, Berens has an average return of -0.7% and a 41.86% success rate on recommended stocks.
In another report released on February 16, Citi also maintained a Sell rating on the stock with a $65.00 price target.
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Blueprint Medicines (BPMC) Company Description:
Blueprint Medicines Corp. is a precision therapy company. It focuses on medicines to improve the lives of patients with genomically defined cancers, rare diseases and cancer immunotherapy. The company was founded by Chris Varma, Nicholas B. Lydon, Brian Druker, and Alexis Borisy on October 14, 2008 and is headquartered in Cambridge, MA.
Read More on BPMC:
- Blueprint Medicines price target raised to $97 from $92 at Needham
- Blueprint Medicines price target lowered to $107 from $115 at Wells Fargo
- Blueprint Medicines price target raised to $65 from $54 at Citi
- Blueprint Medicines price target raised to $125 from $85 at H.C. Wainwright
- Blueprint Medicines price target raised to $99 from $90 at Oppenheimer
