Wolfe Research initiates Blueprint Medicines with Outperform rating

Published 18/03/2025, 14:10
Wolfe Research initiates Blueprint Medicines with Outperform rating

Tuesday, Wolfe Research initiated coverage on Blueprint Medicines (NASDAQ:BPMC) with an Outperform rating, signaling optimism for the company’s financial prospects. Currently valued at $5.89 billion, InvestingPro analysis indicates the stock is trading near its Fair Value. Wolfe Research analysts predict that Blueprint Medicines will reach profitability and cash-flow positivity by late 2026, potentially attracting new investment as the stock becomes more appealing.

Blueprint Medicines is expected to become a semi-defensive stock within the biotech sector, particularly beneficial in the current risk-off macro environment. With an impressive 104% revenue growth and 96% gross profit margin in the last twelve months, the company’s Ayvakit revenue is anticipated to continue driving the stock’s performance, especially if management revises upward the total addressable market (TAM) and revenue guidance.

While there is less certainty regarding the outcome of the Cogent data readout, analysts concur with the general positive market sentiment toward Blueprint Medicines leading up to the results expected in July. The success of Cogent is seen as crucial for changing the narrative around the company’s prospects.

For the year 2025, Wolfe Research forecasts that the valuation gap for Blueprint Medicines will narrow as Ayvakit delivers on earnings expectations. InvestingPro data shows analyst targets ranging from $83 to $169, with several more key insights available to subscribers. The concerns regarding seasonality, linked to insurance reverification, are considered to be exaggerated, and analysts expect earnings to accelerate throughout the year. They also suggest that management will likely be able to confidently restate or even raise the revenue guidance, which should have a positive impact on the stock. Discover more detailed analysis and 6 additional ProTips in the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Blueprint Medicines has captured attention with several noteworthy developments. Jefferies initiated coverage on the company with a Buy rating and set a price target of $135, highlighting the expanded approval of Ayvakit, which now includes ’indolent’ systemic mastocytosis, broadening its market reach significantly. Scotiabank (TSX:BNS) also expressed optimism with a Sector Outperform rating and a price target of $150, noting the underappreciated value of the company’s systemic mastocytosis franchise. Citizens JMP reaffirmed their Market Outperform rating and maintained a $125 price target, emphasizing the anticipated sales growth of Ayvakit, projected to reach $700 million by 2025.

Stifel maintained its Buy rating and set a $155 price target, addressing concerns about Ayvakit’s safety and reaffirming confidence in the drug’s clinical data. JMP Securities held a Market Outperform rating with a $126 price target, citing the positive impact of long-term data from the PIONEER trial on Ayvakit’s safety perception. Analysts across these firms have noted the potential for Blueprint Medicines’ pipeline, including the promising prospects of BLU-808 and other therapies. These developments underscore the company’s strategic focus on expanding its market presence and enhancing physician confidence in its offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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