Yahoo Finance Regeneron’s Target Price Downgraded by Wall Street Analysts
Did Regeneron Pharmaceuticals Beat Earnings Estimates in 1Q16?
Analysts’ recommendations after 1Q16 earnings
Regeneron Pharmaceuticals (REGN) released its 1Q16 earnings on May 5, 2016. Following the earnings disappointment, Wall Street analysts revised their target prices for the company.
REGN’s 12-month target price was downgraded from $523.80 on February 9, 2016, to $472.60 on May 5, 2016.
The above table portrays 20 brokerage firms and their estimated target prices for Regeneron Pharmaceuticals. The consensus 12-month target price for REGN has been revised to $472.60. This translates to a ~27.7% return compared to REGN’S closing price of $369.95 on May 6, 2016.
According to a Bloomberg survey of 27 brokerage firms recorded on May 5, 2016, 51.9% of brokerage firms rated Regeneron a “buy,” while 44.4% of broker firms rated the company a “hold.” Only 3.7% of brokerage firms issued a “sell” rating on the stock.
Read How Did Regeneron Land Such a Premium Valuation? to learn about REGN’s valuation.
Analysts’ recommendations for peers
Per a Bloomberg survey of 26 analysts dated May 5, 2016, 50% of analysts issued a “buy” rating for Amgen (AMGN), whereas 46.2% gave the stock a “hold” rating. The remaining 3.8% of analysts issued the stock a “sell” rating.
According to another Bloomberg survey of 26 analysts dated May 5, 2016, 80.8% of analysts believed that Celgene (CELG) should be a “buy,” whereas 15.4% gave the stock a “hold” rating. Only 3.8% of analysts were cautious and gave the stock a “sell” rating.
Out of 25 analysts that were part of a Bloomberg survey dated May 3, 2016, 68% issued a “buy” rating for Vertex Pharmaceuticals (VRTX), whereas 32% gave the stock a “hold” recommendation.
To avoid the direct risk of investing in a pharmaceutical or biotechnology stock, you can invest in the iShares Core S&P 500 ETF (IVV), which invests 0.16% of its total assets in REGN.
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