Geoffrey Porges of Sanford C. Bernstein & Co. notches his tenth showing in the lineup with a sixth straight No. 3 finish. “The rally is certainly beyond the fourth inning but not yet in the eighth,” says Porges of the sector’s strong performance. Industry fundamentals remain very strong, with large- and midcap names regularly beating consensus revenue and earnings expectations, he notes. Thanks to a more obliging regulatory environment, “drugs are coming to market faster, with lower risk, and their commercialization costs are lower than in the past,” he adds. “As a result, operating margins are improving, as are returns on invested capital, and stocks are moving appropriately.” Finally, the analyst offers, “the current era of highly specific or targeted therapies is changing the landscape, and economic returns, for the industry.” Against this backdrop, Porges favors Celgene Corp., a Summit, New Jersey–based genetic therapy developer that “has become a staple of large-cap growth-fund managers — and with its $60 billion market cap now also rivals some pharmaceuticals names,” he contends. “With their own medical breakthroughs recently or soon to launch, and our estimates 15 to 20 percent above consensus, we like this stock well into the $160s.” Celgene’s shares closed August at $139.98. Porges “has everything,” one advocate insists: “incredible knowledge, investment advice that has made people huge amounts of money, a great work ethic and a nice way with clients.” — Leslie Kramer |
Leslie Kramer Celgene Corp., Co. Geoffrey Porges Sanford C. Bernstein Geoffrey Porges New Jersey
