Oppenheimer Keeps a Buy Rating on Portola Pharma

By Carrie Williams

In a report released today, Jay Olson from Oppenheimer reiterated a Buy rating on Portola Pharma (NASDAQ: PTLA), with a price target of $80. The company’s shares opened today at $47.25.

Olson wrote:

“PTLA shares sold off (-14% vs. +1% for the NBI and S&P500 flat since 12/22) after the company disclosed a three-month delay to the AndexXa PDUFA. We believe this decline is unwarranted based on our view that PTLA plans to launch two new drugs in 2018, each with sales potential exceeding $1B at peak by our estimates. We see the three-month delay to AndexXa as essentially immaterial to our outlook for PTLA. We update our model to reflect a US launch of AndexXa in 2Q18 (vs. 1Q18 prior) which results in small updates to our revenue and earnings estimates. We view the weakness in PTLA shares as a buying opportunity and reiterate our Outperform rating and $80 price target.”

According to TipRanks.com, Olson is ranked 0 out of 5 stars with an average return of -4.7% and a 39.8% success rate. Olson covers the Healthcare sector, focusing on stocks such as Eiger Biopharmaceuticals, Spero Therapeutics Inc, and CymaBay Therapeutics.

Currently, the analyst consensus on Portola Pharma is Strong Buy and the average price target is $74.75, representing a 58.2% upside.

In a report released today, Citigroup also maintained a Buy rating on the stock with a $74 price target.

Based on Portola Pharma’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $3.83 million and GAAP net loss of $82.94 million. In comparison, last year the company earned revenue of $9.32 million and had a GAAP net loss of $92.89 million.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PTLA in relation to earlier this year. Most recently, in October 2017, Henry Ward Wolff, a Director at PTLA bought 12,000 shares for a total of $63,600.

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Portola Pharmaceuticals, Inc. engages in the development and commercialization of novel therapeutics in the areas of thrombosis and other hematologic disorders, and inflammation. Its development-stage portfolio consists of the compounds including Betrixaban, a novel oral once-daily inhibitor of Factor Xa in phase three clinical trials for extended duration prophylaxis, or preventive treatment of a form of thrombosis known as venous thromboembolism, in acute medically ill patients; Andexanet alfa, a recombinant protein designed to reverse anticoagulant activity in patients treated with a Factor Xa inhibitor; and Cerdulatinib, an orally available kinase inhibitor that inhibits spleen tyrosine kinase and janus kinases, enzymes that regulate important signaling pathways. The company was founded by Charles J. Homcy and David R. Philips on September 2, 2003 and is headquartered in South San Francisco, CA.