With biotech stocks hitting new highs since January, some of the analysts still think that the stocks still have enough space to run some more! According to iShares Nasdaq biotechnology index (IBB), in seven months, Nasdaq has attained the highest levels. IBB is also responsible for keeping a track of how the pharmaceutical companies have been performing.
The portfolio manager with Stifel Nicolaus, Chad Morganlander in great hopes that over the next three to five years, there would be a constant increase and improvement in the revenue growth due to betterment within the margins of operation. He went on to say during an appearance on CNBC’s Power Lunch on Thursday that he would be a valuable player in a world where people were not valued. Further, Morganlander stated that Amgen, which was a multinational company that forms 8.32% of IBB, was among the stronger players, being the second-largest weighted company after Celegne in the index.
According to Morganlander, Amgen was a “dividend grower” upon whom he placed a $200 price target and also stated that it has a rate of growth of 15% to 20% with a yield of approximately 2.3%.
On the other hand, the ETF has been enjoying the low levels the IBB managed to reach since January, because from its all-time high in January for IBB, it has now fallen down quite considerably, so several analysts have become more bullish on the area related to this issue.
Cowen’s head of Equity sales trading, David Seaburg said at Power Lunch that a huge emotional shift was being viewed at the moment, and people were getting comfortable and this has only been possible since many big-cap names have reportedly seen good quarter periods and guides that were decent. Biotech stocks are not just all about sweet stuff and roses. There have been failures too and they have never been pleasant. One such instance was shared by Bristol-Myers on the news of a clinical trial that failed.