Analysts have been eager to weigh in on the Healthcare sector with new ratings on Mesoblast Ltd (MESO), Cytokinetics Inc (CYTK) and Repligen Corp (RGEN).
Mesoblast Ltd (MESO)
H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Mesoblast Ltd today and set a price target of $6.50. The company’s shares closed yesterday at $4.19, close to its 52-week low of $3.35.
Ramakanth observed:
“We maintain our Buy rating of MESO with a 12-month price target of $6.50 per diluted share. We derive our price target based on an NPV analysis of projected product revenues through FY2030. We assume a 12.2% discount rate, formulated by our calculation of Mesoblast’s weighted average cost of capital, and 3% terminal growth rate. We derive an NPV of $1.1B and add in pro forma net cash of $28.5M to arrive at a 12-month price target of $6.62, which we round to $6.50. (1) commercial; (2) partnership; (3) clinical; (4) financial; and (5) intellectual property.”
According to TipRanks.com, Ramakanth has 0 stars on 0-5 star ranking scale with an average return of -3.4% and a 35.8% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Collplant Holdings Ltd, Leap Therapeutics Inc, and Tyme Technologies Inc.
Mesoblast Ltd has an analyst consensus of Strong Buy, with a price target consensus of $14.88, implying a 255.1% upside from current levels. In a report issued on February 20, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $23 price target.
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Cytokinetics Inc (CYTK)
In a report released today, Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Cytokinetics Inc, with a price target of $21. The company’s shares closed yesterday at $7.21.
Pantginis observed:
“Valuation and potential impediments to achieving it. We maintain our Buy rating and $21 price target. We highlight that omecamtiv, partnered globally with Amgen, drives the lion’s share of our current valuation (>80%). Reldesemtiv (CK-107) represents the remainder of the contribution to our valuation (15.1% for SMA and 3.5% for ALS) with no contribution from the pipeline. We highlight that our projections for reldesemtiv in ALS could be considered quite conservative (10% chance of success for late Phase 2 asset and $750 million peak sales) but takes into consideration the underlying perceived risk for ALS. Our price target is based on our clinical net present value (NPV) model.”
According to TipRanks.com, Pantginis is ranked 0 out of 5 stars with an average return of -17.4% and a 25.6% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Applied Genetic Technologies, Checkpoint Therapeutics Inc, and Dova Pharmaceuticals Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Cytokinetics Inc with a $14.67 average price target, implying a 103.5% upside from current levels. In a report issued on February 20, Piper Jaffray also reiterated a Buy rating on the stock with a $12 price target.
Repligen Corp (RGEN)
In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Hold rating on Repligen Corp, with a price target of $65. The company’s shares closed yesterday at $58.05.
Selvaraju said:
“We utilize a discounted cash flow (DCF)-driven analysis approach to value Repligen shares. Our assessment yields an enterprise value of roughly $2.8B (previously about $2.7B). We utilize a 9% discount rate and 27% effective tax rate (29% tax rate previously). This yields a market value of the firm of $3.1B (previously $2.9B), assuming roughly $234M in cash as of end-2019. Given the projected 47M shares outstanding as of end-2019, this yields a price objective of roughly $65 per share.”
According to TipRanks.com, Selvaraju is ranked 0 out of 5 stars with an average return of -10.4% and a 33.8% 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 Repligen Corp is a Moderate Buy with an average price target of $65.
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