Opinions
The Panic-Proof Portfolio (Stockchase Research)
Agios Pharmaceuticals Inc.
AGIO-Q
PAST TOP PICK
Apr 08, 2025
Stock price when the opinion was issued
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AGIO is a biopharma company focusing on various cancer treatments. It continues to advance its pipeline of new rare disease treatments include one for anemia blood disorder. It has recently sold a royalty for one of its drugs that is increasing cash reserves dramatically. We like that it trades at 3x earnings, 1.2x book and supports a ROE of 53%. We recommend setting a stop-loss at $21, looking to achieve $43 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $57.00)We reiterate AGIO as a TOP PICK. The developer of cancer treatment drugs expects two more products to go commercial over the next year- each with the potential to grow cash flows substantially. It trades at 3x earnings, 1.2x book and supports and supports a robust 57% ROE. We recommend trailing up the stop (from $21) to $25, looking to achieve $41 — upside potential of 28%. Yield 0%
(Analysts’ price target is $54.57)
Our PAST TOP PICK with AGIO has triggered its stop at $25. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 23%, when combined with our previous guidance.