Price Target Adjustment#
Bernstein SocGen Group has lowered its price target for BioMarin Pharmaceutical Inc. from $94 to $82, while still maintaining an Outperform rating. This means they believe the stock will perform better than the market average despite the price target reduction.
Financial Performance#
In its recent report, BioMarin announced revenue of $766 million, which was slightly above expectations by 1%. However, the company reported earnings per share (EPS) of $0.76, which fell short of estimates by 13%. This discrepancy in EPS was mainly due to a one-time cost related to goods sold, indicating that the earnings were impacted by a specific expense rather than ongoing operational issues.
Updated Guidance#
BioMarin updated its guidance to include contributions from its recent deal with Amicus, which will enhance its enzyme replacement therapy business. The new guidance suggests a company-wide revenue growth of 20% year-over-year, a significant increase compared to the 5% growth expected if assessed on a standalone basis. Despite the lowered price target, analyst estimates for BioMarin's stock still range widely from $55 to $120, indicating differing opinions on its valuation.
Market Reactions#
Despite the strong financial results, including beating revenue expectations, BioMarin's stock saw a slight decline in aftermarket trading. In related news, Evercore ISI has adjusted its price target for BioMarin shares upward from $110 to $120, citing a perceived valuation gap within its coverage universe, which is supported by the recent strong first-quarter results. These developments underscore the ongoing analytical adjustments and financial performance of BioMarin.