Analysts Comment on Two Rising Healthcare Stocks: EndoChoice Holdings Inc (GI), Kite Pharma Inc (KITE)

EndoChoice Holdings Inc

EndoChoice Holdings Inc (NYSE:GI) shares jumped nearly 90% today following the news that Boston Scientific Corporation (NYSE:BSX) will acquire GI for $8.00 per share or $210M of cash.

Needham analyst Michael Matson commented, “EndoChoice offers both products and services for gastroenterologists. Its portfolio includes single-use devices (including resection/retrieval devices, graspers, and infection control kits), imaging equipment including the FUSE colonoscope system which offers a wider field of view, and pathology services. BSX plans to evaluate strategic options for EndoChoice’s FUSE colonoscope; we assume that this means that BSX will attempt to divest the product line.”

“We also believe that BSX is paying an attractive price for EndoChoice since the deal values it at 2.4x 2016E sales and since EndoChoice shares were priced at $15 at its June 2015 IPO and had traded as high as $19. We also think that the deal is somewhat negative for CMN since it puts the EndoChoice disposable infection control products in the hands of a much larger company with a much larger sales force, global presence, a broad GI portfolio,” the analyst continued.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Matson has a yearly average return of 10.4% and a 66% success rate. Matson is ranked #114 out of 4183 analysts.

Kite Pharma Inc

Jefferies analyst Biren Amin is out with a research report on shares of Kite Pharma Inc (NASDAQ:KITE) after the firm announced favorable top-line interim results for its leading pipeline drug KTE-C19 from its ZUMA-1 pivotal trial in patients with aggressive Non-Hodgkin’s lymphoma (NHL). Kite shares reacted to the news, rising nearly 9% to $59.99.

In light of the positive interim analysis, Amin reiterates a Buy rating on shares of KTE with a $72 price target, which represents a 20% increase from where the stock is currently trading.

From Amin’s perspective, “We view the 3-month CR rate across the entire ZUMA-1 cohort as favorable and suggestive of a durable response. An FDA mtg is planned in the next few months that could lead to a BLA filing in DLBCL, TFL, and PMBCL by YE2016.”

The analyst asserts, “We believe that the FDA will be most interested in the durability of response when evaluating the efficacy of KTE-C19 and that KITE has set a bar of 6.6 months for mOS based on the Scholar 1 study in a similar patient population.”

“Although the PII durability data is immature, we view the CR rate at 3 months follow up to be a reasonable proxy for durability at this juncture and believe that most of the CR responses ongoing at 3-months should remain durable,” Amin concludes.

According to TipRanks, five-star analyst Biren Amin is ranked #265 out of 4,183 analysts. Amin has a 57% success rate and yields 10.2% in his annual returns. When recommending KITE, Amin gains 28.5% in average profits on the stock.

TipRanks analytics demonstrate KITE as a Strong Buy. Based on 10 analysts polled in the last 3 months, 8 rate a Buy on KITE, while 2 maintain a Hold. The 12-month price target stands at $74.43, marking a nearly 25% upside from where the shares last closed.


Stay Ahead of Everyone Else

Get The Latest Stock News Alerts