Its flagship drug Soliris is currently approved to treat a rare genetic blood disorder. Alexion also developed asfotase alfa for treatment of patients with infantile- and juvenile-onset hypophosphatasia, which secured the FDA’s “Breakthrough Therapy” designation in 2013 and is likely to be approved in the United States later this year. Additionally, this innovative pharmaceutical developer is on the verge of several other breakthrough drugs.
JPMorgan Chase recently moved ALXN stock to an “overweight” rating, saying the company is “entering a data rich 12-24 months, which is [an] underappreciated point.”
Capital IQ rates ALXN stock a “buy” and expects sales of Soliris to increase 18.4% in 2015, following a 44% increase in 2014. Its analysts forecast operating earnings will increase 78% to $5.80 per share this year, with gross margins of about 91.5%. Their 12-month price target is $240, but at an estimated compounded annual growth rate of 26%, this could prove to be conservative.
Technically ALXN stock jumped from a low of about $157 in June to a high of $208.88 on Thursday, which approximately matches a high made in late 2014. The recent advance triggered a new golden cross, a long-term buy signal, as it moved higher along a short-term trendline and its 20-day moving average, now at $196.56.
ALXN stock is highly volatile, so under current market conditions it is likely that it can be bought at a much lower price. Therefore, my buy under price is $190. A stop-loss order should be entered at $175.
My trading target is $240, which could be achieved within three months. If so, ALXN stock would provide speculators with a return of more than 25%.
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