Analyst Maury Raycroft of Jefferies maintained a Buy rating on Opko Health (OPK – Research Report), with a price target of $2.00.
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Maury Raycroft has given his Buy rating due to a combination of factors that highlight Opko Health’s strategic moves and potential for growth. The recent sale of oncology and oncology-related diagnostic assets to Labcorp is a significant step, providing Opko with $192.5 million upfront and a potential additional $32.5 million based on certain conditions. This transaction not only streamlines Opko’s operations but also enhances profitability by focusing on more lucrative segments of their diagnostics business.
Furthermore, the company’s remaining diagnostics business is expected to generate approximately $300 million annually, with a gross margin exceeding 27%. This positions Opko well for profitable growth and potential mergers and acquisitions. Additionally, Opko’s ModeX pipeline, particularly the development of the MDX2001 antibody, presents promising opportunities for future partnerships and revenue streams. These strategic initiatives and financial prospects underpin Raycroft’s positive outlook on Opko Health’s stock.
In another report released yesterday, Barrington also maintained a Buy rating on the stock with a $2.25 price target.
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