There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Alimera (NASDAQ:ALIM) and Spectrum Pharmaceuticals (NASDAQ:SPPI) with bullish sentiments.
Alimera (ALIM)
In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Alimera, with a price target of $2.50. The company’s shares closed yesterday at $1.05.
Selvaraju said:
“Our price target is derived from a market value of the firm at $161M, excluding $39M term loan outstanding. This valuation includes a discounted cash flow analysis based asset value of $200M for Iluvien, which utilizes a 15% discount rate and a 2% terminal growth rate.”
According to TipRanks.com, Selvaraju is a 4-star analyst with an average return of 5.2% and a 47.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
Currently, the analyst consensus on Alimera is a Strong Buy with an average price target of $2.75, a 161.9% upside from current levels. In a report released yesterday, Cowen & Co. also maintained a Buy rating on the stock with a $3 price target.
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Spectrum Pharmaceuticals (SPPI)
H.C. Wainwright analyst Edward White maintained a Buy rating on Spectrum Pharmaceuticals today and set a price target of $40. The company’s shares closed yesterday at $21.05.
White wrote:
“We are raising our price target to $40 from $34 due to raising our estimate for the probability of approval of poziotinib to 80% from 60%. Our price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.90 per share, the pipeline at $12.24 per share, and YE18 estimated fully diluted net cash of $1.65 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.13, discounted at 15%.”
According to TipRanks.com, White is a 5-star analyst with an average return of 26.2% and a 56.4% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Spectrum Pharmaceuticals with a $38 average price target, representing an 80.5% upside. In a report issued on August 31, B.Riley FBR also reiterated a Buy rating on the stock with a $35 price target.
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