H.C. Wainwright analyst Yi Chen reiterated a Buy rating on Opko Health (OPK – Research Report) today and set a price target of $3.00.
Yi Chen has given his Buy rating due to a combination of factors including the anticipated topline growth and strategic business transactions. Despite a topline miss in the first quarter of 2024 with revenues falling short of projections and a year-over-year decline, there is an expectation of near-term growth driven by profits from global sales of pharmaceutical products NGENLA and Genotropin. Additionally, Opko Health’s upcoming transaction with Labcorp, which is expected to close in the second half of 2024, is seen as a positive move to streamline its diagnostics services while retaining core operations. This transaction is also anticipated to contribute to the company’s financials, with management guidance reflecting sales from assets related to the Labcorp deal.
Furthermore, promising developments in Opko Health’s pharmaceutical pipeline contribute to the positive outlook. The company’s subsidiary, ModeX, is preparing to initiate a Phase 1 trial for its tetraspecific LASER antibody, MDX2001, aimed at treating solid tumors, with patient enrollment beginning in the second quarter of 2024. This advancement, along with the potential for clinical development of additional oncology candidates by the end of 2025, suggests a robust future for the company’s pharmaceutical segment. Despite a current net loss and cash outflows from operating activities, the company’s cash position is bolstered by the expected proceeds from the Labcorp deal, which Yi Chen believes should support near-term operations, further underpinning the Buy rating and the $3 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
