You can gauge Wall Street’s love for a stock by looking at analysts rating and price target on the stock. Obviously, buy rating and higher target price compared to the prevailing price indicate positive view of a stock. Some of the biotech stocks that Wall Street appears to love are Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), Celgene Corporation (NASDAQ:CELG) and Gilead Sciences, Inc. (NASDAQ:GILD).
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
This biotech carries nine “strong buy” ratings, seven “buy” ratings and seven “hold” rating. Alexion has an average target price of $219, which is about 20% above the current stock price. The reason Wall Street loves Alexion can be linked to the success of Soliris, a treatment for some rare blood disorders. The drug brought in more than $2.2 billion in revenue in 2014, representing an increase of 44% from the previous year.
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) could continue generating more revenue from Soliris because the company is seeking to expand the label of the drug.
In addition to Soliris, Alexion also has a strong drug pipeline, which includes asfotase alfa. The treatment is designed for a medical condition known as hypophosphatasia. Alexion is seeking regulatory approval of the drug in Japan, Europe and the U.S., with possible annual sales of $1 billion.
Celgene Corporation (NASDAQ:CELG)
Celgene Carries 11 “strong buy” ratings, 12 “buy” ratings, three “hold” ratings, and then another analyst rates the stock as “underperform”. The consensus target price on the stock is $140.50, about 19% above the current price.
Celgene Corporation (NASDAQ:CELG) has a blood cancer drug known as Revlimid, which brought in $4.98 billion in revenue last year, representing double-digit sales improvement from the previous year. Europe recently approved expanded treatment label for the drug.
Besides Revlimid, Celgene also has some other drugs known as Pomalyst and Abraxane, which have blockbuster potential.
With over $7.5 billion in cash stockpile, Celgene is in well-positioned to acquire more drug candidate with even greater revenue potential.
Gilead Sciences, Inc. (NASDAQ:GILD)
Gilead Sciences is another highly favored biotech name on Wall Street. The company has nine “strong buy” ratings, 13 “buy” ratings, three “hold” and one “underperform” rating. The stock carries a consensus target price of $120, about 18% above the prevailing price.
Wall Street’s love for Gilead Sciences, Inc. (NASDAQ:GILD) can be traced to the company’s two hepatitis C drugs namely Harvoni and Sovaldi, which together generate revenue above $12.4 billion in 2014. The company’s $10.13 billion cash hoard is another reason for Wall Street optimism in the stock.