Celgene Corporation (CELG) — I covered CELG stock and my other favorite biotech, Gilead Sciences, Inc. (GILD), several times last year. Both turned in stellar performances in 2014, up 34% and 26%, respectively. Both also remain favorites of S&P Capital IQ and other Wall Street research firms, and have held up well in the face of recent broad-based selling.
I reviewed Gilead as recently as Dec. 30, with a recommendation to buy shares under $95 for a trading objective of $110. GILD stock fell to a low of $93.18 on Monday, and closed Tuesday at $97.65. It remains a “buy” for traders and investors alike.
On Tuesday, Barclays Capital initiated coverage of CELG stock with an equal-weight rating and $120 target. The analyst noted Celgene’s longer-term potential, impressive partnered pipeline and phase II data for its treatment for Crohn’s disease.
Capital IQ maintains a “strong buy” rating on CELG stock and recently raised its 12-month price target from $104 to $122, which is 10% above current prices.
I last covered Celgene on Dec. 18. Due to its ability to withstand recent selling pressure, I repeat my “buy” recommendation. Selling volume has declined following what appears to be a selling climax in mid-December. Volatility in the broad market is so high that orders to buy CELG stock may still be executed under its November breakout at $108.
I’m increasing my trading target to $122 from $120. Long-term investors may buy CELG stock at the current price with a target of $150, up from a previous $145.
