Citigroup is out positive on Celgene (NASDAQ:CELG) reiterating BUy and $82 tgt after the co announced that the 30-day period for the Federal Trade Commission (FTC) review of its proposed merger with Pharmion under the Hart-Scott-Rodino Act has expired. The companies did not get any questions from FTC.
In Citi's view, the stock is now close to a bottom and they believe investors concerns about
Q4 Revlimid sales and '08 guidance are fully reflected in the stock. Thus, they like the risk/reward profile since they believe that the $230M Revlimid consensus sales estimate in Q4 is achievable (Citi at $224M). The firm does not believe that Velcade has impact Revlimid at this point.
They believe that these estimates are achievable and anticipate that Celgene will provide a conservative guidance on Monday, Jan. 7th, that is largely in the neighborhood of these estimates. Thus, they like the risk/reward profile and believe that the stock
is close to a bottom.
Notablecalls: CELG looks bottomed out here. I would buy the stock here.
