Seeking Alpha

SA writer David Zanoni recommends having a look at Celgene (CELG -1.5%), citing its 5...

SA writer David Zanoni recommends having a look at Celgene (CELG -1.5%), citing its 5 FDA-approved cancer drugs and its extensive pipeline. What Zanoni really likes, though, is Celgene's earnings growth, which is forecast at an average of 25% over the next five years. If that is achieved, "Celgene's stock price of (about) $65 should grow to around $200."
Comments (2)
  • petten
    , contributor
    Comments (128) | Send Message
     
    yeah right. celg has been around its current price for more than five years. dream on.
    11 Jun 2012, 04:23 PM Reply Like
  • Brendan O'Boyle
    , contributor
    Comments (1114) | Send Message
     
    I have to look over what CELG has in the pipeline. 300% seems unlikely, CELG's current market cap is 27B, so 3x would be nearly 80% of the largest Pharma companies (MRK, PFE, etc.).

     

    I can't see how that can happen without CELG tripling revenues, which probably means at least doubling their drugs. They have five, five more soon is unlikely.

     

    I think CELG is a good buy, just don't expect a 300% return.
    14 Jun 2012, 01:17 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector