Jim Cramer Is All Aboard Union Pacific, But Shows No Love For Orphan Drugs

On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended buying Union Pacific UNP. “I think it's a really good stock to own,” he added.

Supporting his view, BofA Securities analyst Ken Hoexter, on May 16, maintained Union Pacific with a Buy rating and raised the price target from $256 to $262.

“I'm getting tired of the orphan drug model,” Cramer said when asked about BioMarin Pharmaceutical Inc. BMRN. “I don't think it works now.”

As per the recent news, BioMarin, on May 16, agreed to acquire Inozyme for $4.00 per share in all-cash transaction for total consideration of about $270 million.

Cramer said he likes the model of ARS Pharmaceuticals, Inc. SPRY. “It's a great flier. Someone needs that technology, someone's going to pay for it,” he added.

Lending support to his choice, ARS Pharmaceuticals, on May 14, posted better-than-expected sales for the first quarter.

“I was prepared for disappointment and I got it,” Cramer said when asked about GitLab Inc. GTLB. “I just do not want enterprise software. I think they're all too expensive.”

Supporting his view, GitLab, on June 10, issued second-quarter sales guidance with its midpoint below estimates. GitLab sees second-quarter adjusted EPS of between 16 and 17 cents, versus the 16 cent estimate, and revenue of between $226 million and $227 million, versus the $227.16 million analyst estimate.

The Mad Money host said he would buy NuScale Power Corporation SMR if it does an offering here. “I'd wait for the stock offering after what happened with Oklo OKLO tonight,” he added.

UBS analyst Jon Windham, on May 29, maintained NuScale Power with a Neutral and raised the price target from $17 to $34.

Price Action:

• BioMarin Pharmaceutical shares fell 0.6% to settle at $57.16 on Wednesday.
• NuScale Power shares jumped 20.4% to close at $41.60.
• Union Pacific fell 0.4% to settle at $225.72 on Wednesday.
• GitLab shares fell 10.6% to close at $43.37.
• ARS Pharmaceuticals shares fell 2.4% to settle at $14.34.

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