Blueprint Medicines stock target cut to $130 at Needham

On Monday, Needham maintained a Buy rating for Blueprint Medicines (NASDAQ:BPMC) but reduced the price target from $133.00 to $130.00. The adjustment precedes the company’s earnings report scheduled for May 1, 2025. According to InvestingPro data, the company maintains a GOOD financial health score despite not being profitable in the last twelve months. With a market capitalization of $5.6 billion, Blueprint operates with strong liquidity, as evidenced by a current ratio of 2.85. Needham’s analyst expects Blueprint Medicines to post first-quarter sales of $154.6 million, which is marginally higher than the consensus estimate of $153 million. However, the firm anticipates an earnings per share (EPS) of -$0.56, which is less than the consensus estimate of -$0.48. This comes after impressive revenue growth of 104% in the last twelve months, with a remarkable gross profit margin of 96%.

Blueprint Medicines is anticipated to continue its strong performance with its product Ayvakit, which is expected to meet or exceed the management’s revenue guidance of $680-710 million. This optimism is based on the increasing market size, diagnosis rates, and treatment rates for the drug’s indications. The upcoming earnings call is likely to provide insights into the impact of U.S. Tariff policy on the company, market dynamics surrounding Ayvakit, and updates on the clinical program for BLU-808, as well as other pipeline developments.

Needham’s price target adjustment reflects a 50 basis points increase in the discount rate used in their sum-of-the-parts (SOTP) discounted cash flow (DCF) analysis. This change is attributed to broader market headwinds that are currently affecting the biopharmaceutical sector.

Blueprint Medicines, which specializes in precision therapy development, is closely monitored by investors for its innovative pipeline and the commercial trajectory of Ayvakit. The company’s performance and strategic updates, particularly regarding its pipeline assets, are key factors that could influence investor sentiment and stock performance in the near term. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Discover more insights and 6 additional ProTips for Blueprint Medicines in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Blueprint Medicines has been the focus of multiple analyst reviews and ratings. JMP Securities maintained a Market Outperform rating with a price target of $125, citing the promising revenue potential of Ayvakit, which is expected to generate significant sales by 2030. Morgan Stanley (NYSE:MS) resumed coverage with an Equalweight rating and a $100 target, acknowledging Ayvakit’s steady growth while expressing a conservative view on long-term revenue expectations. Wolfe Research initiated coverage with an Outperform rating, projecting profitability by late 2026 and emphasizing Ayvakit’s role in driving performance. Jefferies issued a Buy rating with a $135 target, highlighting the expanded approval of Ayvakit for a broader patient base and its potential to significantly increase market reach. Scotiabank (TSX:BNS) set a price target of $150 with a Sector Outperform rating, suggesting that the market may undervalue Blueprint’s systemic mastocytosis franchise and highlighting the potential of elenestinib and BLU-808 in the company’s pipeline. These developments reflect a range of perspectives on Blueprint Medicines’ financial prospects and strategic initiatives.

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