The firm has an $11 price target on shares of the Cambridge, MA-based biopharmaceutical company, according to FactSet.
JMP analysts see limited near-term upside to Ariad Pharmaceuticals' stock due to prescription trends and ongoing scrutiny of Iclusig drug pricing.
Last week, Senator Bernie Sanders (I-VT) and Representative Elijah Cummings (D-MD) sent a letter to the company saying price increases for its Iclusig leukemia drug are "staggering."
The letter mentioned TheStreet's Adam Feuerstein, who said that Ariad hiked Iclusig's price to $199,000 per year in 2016 from $115,000 per year in late 2012.
"We believe recent scrutiny of the company's pricing policies by members of the U.S. Senate and House of Representatives may have a two-fold effect for the company of adverse publicity or potential modification of Iclusig's pricing," JMP said in an analyst note.
JMP added that either outcome "does not bode favorably" for Ariad share performance near term.
Shares of Ariad were higher in late-afternoon trading on Tuesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Ariad Pharmaceuticals as a Sell with a ratings score of D+. Among the areas the team feels are negative, one of the most important has been weak operating cash flow.
You can view the full analysis from the report here: ARIA