The New York-based biopharmaceutical company is focused on the development and commercialization of therapeutics to treat chronic liver diseases.
Intercept's lead asset OCA is being developed for two liver indications: nonalcoholic steatohepatitis (NASH) and primary biliary cirrhosis (PBC).
"Phase 3 NASH provides downside protection if PBC is not approved or underperforms expectations. NASH is still a blockbuster opportunity for Intercept, but we believe the near-term catalysts are driven by PBC," Credit Suisse said in an analyst note.
Downside risks include commercial setbacks, no approval in PBC, safety issues with OCA and NASH competition, the firm noted.
Shares of Intercept closed higher by 0.61% to $125.02 on heavy trading volume on Wednesday.
About 1.14 million of the company's shares changed hands today vs. its average volume of 631,242 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by some concerns, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, 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.
You can view the full analysis from the report here: ICPT