Oppenheimer Downgrades Opko Health, Expectations Too High

Opko Health Inc. OPK investor expectations are too high, although the company is on track with growth plans, an analyst said Tuesday.

Oppenheimer's Rohit Vanjani downgraded the drug and diagnostics company to Market Perform, from Outperform, and cut his 2015 revenue estimate more than 14 percent to $101 million.

But Vanjani cited the company's share price as the primary reason for his downgrade.

Opko missed quarterly expectations Friday and has since fallen more than 4 percent, trading recently at $14.05 a share.

But even with the recent decline, Opko has soared more than 68 percent since December on optimism for its diagnostic products for prostate cancer and vitamin D deficiency.

Vanjani, who dropped a $12 price target Tuesday, said 2015 could prove "an inflection point" for sales as insurance reimbursements are expected to commence for use of Opko's 4Kscore prostate test.

The product is aimed at helping urologists decide whether to perform prostate biopsies.

Opko may see several catalysts for its share price in 2015, including an expected new drug application in the current quarter for its Rayaldee treatment for vitamin D deficiency among patients with kidney disorders, Vanjani said.