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On Friday, Scotiabank (TSX:BNS) initiated coverage on Blueprint Medicines Corporation (NASDAQ:BPMC), a biopharmaceutical company, with a Sector Outperform rating and a price target of $150.00 per share. The bank’s analysts highlighted the potential underappreciation of the company’s systemic mastocytosis (SM) franchise, which they believe could significantly enhance the stock’s performance. Currently trading at $88.54, the stock has seen a challenging week with an 8.3% decline, though InvestingPro data shows analyst targets ranging from $83 to $169, suggesting significant potential upside.
Blueprint Medicines’ stock has experienced volatility recently, but Scotiabank suggests that the market has yet to fully recognize the value of the company’s $4 billion SM franchise. The analysts argue that the Street’s current view does not reflect the true potential of this aspect of the business. This assessment aligns with the company’s impressive 104% revenue growth over the last twelve months, according to InvestingPro data, which also indicates the stock is currently trading near its Fair Value.
The coverage also points to elenestinib, a treatment developed by Blueprint Medicines, which the analysts feel has not received the attention it merits. The drug is part of the company’s portfolio of targeted therapies designed to improve the lives of patients with genomically defined diseases.
Furthermore, Scotiabank is optimistic about the proof of concept (POC) data from studies on BLU-808, another drug in Blueprint Medicines’ pipeline. According to the analysts, BLU-808 represents what could be the largest opportunity yet for the company, and its progress is expected to contribute to the growth of the stock’s value.
The new price target of $150.00 represents Scotiabank’s confidence in the future trajectory of Blueprint Medicines’ shares. The Sector Outperform rating suggests that the analysts believe the company will outperform the overall sector in the coming year.
In other recent news, Blueprint Medicines reported a challenging fourth quarter for 2024, missing analyst expectations for both earnings per share and revenue. The company posted an EPS of -0.79, which fell short of the forecasted -0.7, and revenue was also below expectations at $144.1 million compared to the projected $146.14 million. Despite this, the company demonstrated significant growth in 2024, with total product revenue reaching $479 million, marking a 135% increase from the previous year. Looking forward, Blueprint Medicines has set a revenue guidance for 2025 between $680 million and $710 million, indicating a 45% growth at the midpoint.
Analysts at Citizens JMP and Stifel have maintained their positive outlook on Blueprint Medicines. Citizens JMP reaffirmed its Market Outperform rating with a $125 price target, while Stifel maintained a Buy rating with a $155 price target. Stifel addressed concerns about the safety of Ayvakit, noting that clinical data did not show any increased risk over a placebo. Furthermore, JMP Securities emphasized the potential for increased physician confidence in Ayvakit following extended follow-up data from the PIONEER trial.
Blueprint Medicines also highlighted their robust financial standing, supported by a pro forma cash reserve of $909.3 million, bolstered by an $80 million inflow from a recent acquisition by GlaxoSmithKline (NYSE:GSK). Additionally, the company plans to initiate proof of concept trials for several conditions, with data anticipated by the end of 2025. These developments underscore Blueprint Medicines’ focus on expanding its market presence and product pipeline, particularly with its leading candidate Ayvakit.
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