"Ultragenyx (RARE +3.8%) has a broad and promising pipeline consisting of four therapies for five rare and serious genetic diseases," says Canaccord analyst Salveen Richter, initiating the red-hot recently IPOd stock with a Buy and $85 price target. "We like the orphan-disease-focused strategy for early proof-of-concept, short time-to-clinic, exclusivity and pricing power and particularly the leveragability of this model." He estimates $1B in peak worldwide sales for the company, with high chance of securing regulatory approval. " In addition, we view the preclinical asset (rhPPCA) as a free call option and expect a continued focus on early-stage R&D."
Cowen and Morgan also launch coverage with Buys.
Ahead since its IPO, but a relative slacker compared to RARE, Cara Therapeutics (CARA +2.6%) also rates a Buy from Canaccord with $25 price target. "We expect positive data from three upcoming post-op Ph3 studies in H2/15," says analyst Ritu Baral. "We think ‘845 could gain significant market share and model potential US peak sales of $750M."
Stifel, Janney, and Piper also chime in with Buy ratings.