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Re: Goldman resumed coverage of Exelixis with a rating of Sell and set a new price target of $23.00Here are a couple of GS-related anecdotes regarding their biopharma analyst calls: Poetic Justice re GS: 3Apr2020 Downgrade of IMMU PT 5; today unexpected early positive halt of Phase III and new CEO with stock up 150% over 23Goldman Sachs 3 April 2020 | 2:14AM EDT
GILD announced plans to acquire IMMU at $88 per share on 13Sep2020. https://www.gilead.com/news-and-press/press-room/press-releases/2020/9/gilead-sciences-to-acquire-immunomedics The following message was updated on 1/6/2014 2:45:35 PM. Three Generations of Goldman Sell-Side Analysts Missed the Boat Reflecting Institution's Bias GS has an abysmal record covering the biotech sector and has been negative on Celgene, whether covered by May-Kin Ho, Sapna Srivastava or Terrence Flynn. May-Kin downgraded Large Cap Biotech to Neutral on 8May2009 and lowered CELG to Sell with a target price of 44. By late Jul2009, the stock was trading in the mid-50s after top-line interim MM-015 data was released. Note the BTK was traded around 615 the week of her infamous call versus 942 during the last week of 2009. May-Kin received the proverbial heave-Ho in Apr2010. GS hired former Celgene bull Sapna Srivastava from her tenure at Morgan Stanley during the summer of 2010 and launched in Nov2010. Reflecting the institutional bias versus the analyst, Sapna changed from her MS days of an Overweight rating with base case TP of 72 and bull case 92 if Revlimid maintenance worked to an initiation of Neutral with TP 60. Note that Sapna actually raised her TP from 60 to 70 on 15Apr2009, 3 weeks before May-Kin's downgrade based on good instincts that MM-015 would yield positive results in a few months. Sapna left in Jun2012. Terrence Flynn launched coverage on 12Dec2012 with Large Cap Biotech Attractive and CELG Neutral with TP 77. He has subsequently raised the target price 6 times starting with 88 in Jan2013 to 140 in Dec2013, while maintaining his Neutral rating until his 5Jan2014 piece going Neutral on Large Cap Biotech and downgrading CELG to Sell. He richly deserves the prize held for many years by RW Baird of most successive TP increases below the current trading price without an upgrade. Chris Raymond eventually came over to the right side. It may be harder to turn Terrence based on his professional affiliation. Celgene will continue to outperform based on a multitude of drivers despite the short-term noise caused by an institution looking to drive volume at the trading desk. The URL below will show 5 year performance of CELG and the BTK index followed by a table of GS CELG TP changes:
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