Should You Buy BioCryst Pharmaceuticals (BCRX) Stock at Current Levels?

Investors in BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) have had an incredible week, and the upswing in the stock is continuing today with the stock in the green by more than 3% early on. The gains were spurred by strong sales figures and projections of more of the same, but is there any more room left here?

In my view, there’s plenty. Here’s why…

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Addressing the Catalyst that Sent BCRX Skyward

We wrote an entire article about the catalyst that sent BioCryst Pharmaceuticals for the top earlier this week. You can find it here. Nonetheless, we’ll cover the topic briefly. 

On Monday, the company announced sales data that proved to be overwhelmingly exciting. 

The company said that ORLADEYO sales resulted in $45.6 in fourth quarter revenue, bringing the full-year’s ORLADEYO sales revenue to $122 million. For the 2022 year, the company said it expects to drive, at minimum, $250 million in ORLADEYO sales. 

Other statistics proved to be positive as well. For example, around 70% of patients that try the therapy stay on it for a minimum of one year. Not to mention, at its peak, BCRX expects ORLADEYO to drive a massive $1 billion in annual sales.  

As a result of the positive news, the stock went wild, clocking gains of around 28% on Monday alone. While the stock tapered off a bit yesterday, the gains seem to be back in full swing today, adding another more than 3% growth to the tape. 

Will the Upward Trend Continue?

In my view, the answer is a resounding yes. The truth is that BCRX management wouldn’t be putting up such high expectations for sales in the year ahead and at peak if it wasn’t confident in its ability to hit those projections. In fact, projections announced to the public are usually designed to set the bar low, giving the public the bare minimum of what to expect. It’s why companies often beat guidance and analyst projections. 

To meet these goals, the company will have to produce 18%, or more, quarter over quarter sales growth on a relatively consistent basis. Not an impossible challenge, and if the company can pull it off, it’s a huge opportunity to win. 

Analyst Coverage

It’s also worth mentioning that analysts seem to absolutely love the stock. At the moment, there are 11 analysts providing coverage, 9 of which rate it a Buy and two of which rate it a Hold. No analysts are currently rating the stock a Sell. 

The price target is equally impressive, sitting at an average of $21.10. Considering the current market value of the stock, that suggests that it could grow well over 25% over the next year. 

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The Bottom Line

The bottom line here is simple, BCRX may have already had a pretty strong run for the top, but that run is far from over. Should the company continue performing at its current rate, the sky really is the limit!

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