Is an Investment in Alexion Pharmaceuticals Inc (NASDAQ:ALXN) as Risky as Its Decline Suggests?

[Benzinga] Alexion Pharmaceuticals Inc (NASDAQ:ALXN)(TREND ANALYSIS) has seen a 15.53 percent decline in its share price in the past three months.
Oppenheimer’s Christopher Marai has maintained an Outperform rating and price target of $228 on the company.
Marai believes that the weakness in the stock offers an attractive buying opportunity, given the revenue growth potential afforded by the soon to be launched Strensiq and Kanuma.
Analyst Christopher Marai believes that Strensiq and Kanuma represent low-risk opportunities for the company, which are expected to drive “above-consensus revenue growth over the next 12-18 months.”

The U.S. approval for the two drugs is expected by year end 2015, with launch acceleration expected with 12-18 months, along with “further patient identification strategies driven by improved diagnosis due to treatment availability,” Marai said.

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Alexion Pharmaceuticals Inc (NASDAQ:ALXN) stock is currently trading 28.55% below its 52-week-high, 1.3% above its 52-week-low. The 1-year stock price history is in the range of $147.34 – $208.88. Alexion Pharmaceuticals Inc (ALXN) has a price to earnings ratio of 50.97 versus Healthcare sector average of 54.18. ALXN stock price has underperformed the Nasdaq by 19.3%. The Biotechnology company is currently valued at $33.75 billion and its share price closed the last trading session at $149.25. The stock has a 50-day moving average of $174.23 and a 200-day moving average of $178.53.

Alexion Pharmaceuticals Inc (ALXN) current short interest stands at 5.39 million shares. It has increased by 17% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.28 million shares, the number of days required to cover the short positions stand at 2.4 days.

The company is expected to announce next quarter earnings on October 22, at consensus estimate of $0.96. Alexion Pharmaceuticals Inc (ALXN) reported last quarter earnings on July 30. The Biotechnology company announced earnings per share of $1.13 against a consensus Street estimate of $1.31, missing estimate by $0.18. This corresponds to an increase of $0.32 compared to the same quarter of the previous fiscal year.

Is this a Buying Opportunity? Click here for a free Trend Analysis Report

There are currently twenty analysts that cover Alexion Pharmaceuticals Inc stock. Of those twenty, fifteen have a Buy rating, five have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $222.12.

A recent analyst activity consisted of Barclays downgrading their Overweight rating to Equal-weight on September 14. Barclays decreased price target from $220 to $205. This corresponds to a 37.35% upside from the last closing price. On the date of report, the stock closed at $168.8.

Stifel Nicolaus reiterated their Buy stance on July 31, and increased their price target on ALXN stock from $239 to $257. This corresponds to a 72.19% upside from the last closing price. On the date of report, the stock closed at $197.44.

Another research firm was JP Morgan who resumed their coverage on the stock with Overweight rating on July 27. JP Morgan decreased price target from $249 to $249. This translates to a 66.83% upside from the last closing price. On the date of report, the stock closed at $198.1.

Company profile

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, researches and develops proprietary immunoregulatory compounds for the treatment of autoimmune and cardiovascular diseases. The Company develops C5 complement inhibitors and Apogens which are two classes of potential therapeutic compounds designed to selectively target specific disease-causing segments of the immune system.

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