This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Analyst's Celldex Call Another Sign Of Biotech Stock Bubble

Stocks in this article: CLDX

NEW YORK (TheStreet) -- Biotech stock bubble alert: On Wednesday, Oppenheimer analyst Boris Peaker jacks his Celldex Therapeutics (CLDX) price target to $40 from $25. Why? Because Peaker predicts an experimental Celldex cancer drug with no human clinical data today will deliver $8 billion (!!!) in sales in 2025. 

Peaker:

Our valuation revision is based on the addition of CDX-1127 to our model. We did not make any changes to our valuation of rindo ($5/share), CDX-011 ($18/share), CDX-1135 ($2/share), and added CDX-1127 ($15/share). We believe that CDX-1127 holds the largest commercial potential compared to CDLX's other assets. However, given the early stage of development, we assume only a 15% probability of success for CDX-1127 at this time and look toward the anticipated data in November to further refine our CDX-1127 NPV. 

A 15% probability of success for CDX-1127 yet it's still worth $15 per share to Celldex today. Why peak out at only $8 billion in sales? Why not $10 billion? $20 billion? You're just throwing darts blindfolded, Boris, so why not go really big? 

We've seen sell-side analysts gin up a lot of crazy excuses to justify higher valuations for development-stage biotech companies these days, but Peaker's rationalization for Celldex is preposterous. 

David Sobek believes the only bubble in biotech today is people warning/complaining about biotech stock bubbles. But the housing bubble began when real estate brokers start selling split-level ranches in Kissimmee, Fla, for $2 million each without anyone raising an eyebrow. Peering 12 years into the future to predict $8 billion in sales for a drug with no clinical data today is no different. 

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs