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 (NYSE: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. (NASDAQ: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. (NASDAQ: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. (NASDAQ: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 (NYSE:SMR) if it does an offering here. “I'd wait for the stock offering after what happened with Oklo (NYSE: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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