Analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on Opko Health (OPK – Research Report), retaining the price target of $3.00.
Yi Chen has given his Buy rating due to a combination of factors surrounding Opko Health’s strategic advancements and partnerships. The collaboration with Entera Bio to develop the first oral dual agonist GLP-1/glucagon peptide for obesity and related disorders is a significant step forward. This innovative drug candidate leverages OPKO’s long-acting oxyntomodulin analog and Entera’s N-Tab technology, showing promising preclinical results. The potential to file an IND application with the FDA later this year positions OPKO to capitalize on the expanding GLP-1 market.
Additionally, the agreement with Labcorp to sell select assets of BioReference for up to $225 million is expected to streamline operations and enhance profitability. This transaction, involving laboratory testing businesses generating substantial annual revenue, could provide OPKO with additional financial flexibility. The strategic use of proceeds to reduce debt further strengthens the company’s financial position. These developments underpin Yi Chen’s confidence in OPKO’s growth prospects, justifying the reiterated Buy rating and a price target of $3.
In another report released on March 13, Jefferies also maintained a Buy rating on the stock with a $2.00 price target.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OPK in relation to earlier this year.