There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Adamas Pharmaceuticals (ADMS), La Jolla Pharma (LJPC) and Biogen Inc (BIIB) with bullish sentiments.
Adamas Pharmaceuticals (ADMS)
In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Adamas Pharmaceuticals, with a price target of $40. The company’s shares closed yesterday at $12.15.
Selvaraju noted:
“Valuation methodology, risks, and uncertainties. Our valuation ascribes a $1B valuation to GOCOVRI in $375M value for ADS-5102 based on a risk-adjusted net present value (rNPV) using a 15% discount rate and 30% effective tax rate.”
According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.3% and a 37.6% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Adamas Pharmaceuticals with a $20.75 average price target, which is a 70.8% upside from current levels. In a report released today, Piper Jaffray also maintained a Buy rating on the stock with a $23 price target.
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La Jolla Pharma (LJPC)
H.C. Wainwright analyst Edward White maintained a Buy rating on La Jolla Pharma today and set a price target of $26. The company’s shares closed yesterday at $6.33, close to its 52-week low of $5.01.
White commented:
“We are raising our price target to $26, up from $25, due to our lower expense estimates. We base our $26 price target on a sum-of-the-parts analysis based on: (1) the P/E value of La Jolla’s current commercial business (Giapreza); (2) an NPV of its pipeline (LJPC-401); and (3) our estimated year-end 2019 fully diluted net cash of $1.69/share to arrive at our price target. We value the current commercial business at $8.76 per share and the pipeline at $15.68 per share. The commercial business value is based on a P/E multiple assumption of 30x our 2024E EPS of $0.51, discounted at 15%.”
According to TipRanks.com, White is a 5-star analyst with an average return of 13.7% and a 47.0% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
La Jolla Pharma has an analyst consensus of Moderate Buy, with a price target consensus of $18.
Biogen Inc (BIIB)
H.C. Wainwright analyst Andrew Fein maintained a Buy rating on Biogen Inc today and set a price target of $363. The company’s shares closed yesterday at $327.26.
Fein said:
“Our PT of $363/share is based on a discounted cash flow analysis using a 10% discount rate and 2% growth rate, in line with the expected discount and growth parameters of a commercial multiproduct biotechnology company. Risks to our investment thesis and target price include: (1) failure in clinical studies; (2) failure to secure regulatory approval; and (3) a smaller than anticipated commercial opportunity due to market size, competition, and/or pricing.”
According to TipRanks.com, Fein is a 5-star analyst with an average return of 9.9% and a 48.3% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.
Biogen Inc has an analyst consensus of Moderate Buy, with a price target consensus of $369.22, a 12.8% upside from current levels. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $400 price target.
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