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On Thursday, Morgan Stanley (NYSE:MS) resumed coverage on shares of Blueprint Medicines (NASDAQ:BPMC) with an Equalweight rating and a price target of $100.00. According to InvestingPro data, analyst targets for BPMC range from $83 to $169, with the company currently commanding a market capitalization of $5.8 billion. The firm’s analysis acknowledges the steady growth of Ayvakit, Blueprint Medicines’ treatment for a rare disease, since its initial approval as a first-in-disease ISM therapy back in 2023.
The growth is attributed to an increase in new patient starts and the expansion of the prescriber base. Additionally, recent claims and epidemiologic data suggest that the disease prevalence may be approximately double previous estimates. This expansion potential is reflected in the company’s impressive revenue growth of 104% over the last twelve months, with an exceptional gross profit margin of 96%, according to InvestingPro analysis. This revelation, combined with Blueprint Medicines’ efforts to initiate reimbursement outside the United States, suggests potential for further sales growth of Ayvakit in the medium-term.
Despite the positive outlook for Ayvakit’s sales, Morgan Stanley expresses a more conservative stance regarding the long-term peak revenue expectations for Blueprint’s systemic mastocytosis (SM) franchise. The firm’s models predict Ayvakit will reach $2 billion in sales, albeit on a more conservative timeline compared to Blueprint Medicines’ own guidance.
The report highlights Ayvakit’s advantages, including its first-to-market status and a favorable safety profile, which are expected to shield it from potential competitors. However, Morgan Stanley is looking for additional information on market dynamics and the potential positioning of elenestinib, a prospective treatment that could provide optionality and extend the intellectual property runway for Blueprint’s SM franchise.
Blueprint Medicines has not yet responded to the new coverage, and the market’s reaction to Morgan Stanley’s analysis will unfold as trading continues. The Equalweight rating suggests that the firm sees the company’s stock as fairly valued at its current price, factoring in the opportunities and challenges ahead. InvestingPro analysis supports this view, with the stock’s current price closely aligned with its calculated Fair Value. Despite strong revenue growth, InvestingPro Tips indicate the company is not expected to be profitable this year, with additional insights available in the comprehensive Pro Research Report.
In other recent news, Blueprint Medicines has garnered attention from multiple analyst firms, highlighting various aspects of the company’s financial and product outlook. Wolfe Research initiated coverage with an Outperform rating, forecasting profitability and cash-flow positivity by late 2026, emphasizing the importance of Ayvakit’s revenue in driving performance. Jefferies also initiated coverage with a Buy rating and a $135 price target, noting the expanded approval of Ayvakit for indolent systemic mastocytosis, which broadens its market reach significantly. Scotiabank (TSX:BNS) set a price target of $150, pointing out the underappreciation of the company’s systemic mastocytosis franchise and potential growth from elenestinib and BLU-808.
Meanwhile, Citizens JMP reaffirmed its Market Outperform rating with a $125 price target, focusing on Ayvakit’s expected sales of approximately $700 million by 2025. Stifel maintained its Buy rating and $155 target, addressing concerns about Ayvakit’s safety by noting no increased risk over a placebo in clinical data. These recent developments underscore the varied analyst perspectives on Blueprint Medicines, with a common theme of optimism surrounding Ayvakit and the company’s pipeline.
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