Analysts Offer Insights on Healthcare Companies: Aduro BioTech (NASDAQ: ADRO) and Conatus Pharmaceuticals (NASDAQ: CNAT)

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Aduro BioTech (NASDAQ: ADRO) and Conatus Pharmaceuticals (NASDAQ: CNAT) with bullish sentiments.

Aduro BioTech (NASDAQ: ADRO)

Oppenheimer analyst Mark Breidenbach maintained a Buy rating on Aduro BioTech (NASDAQ: ADRO) today and set a price target of $13. The company’s shares closed yesterday at $7.25.

Breidenbach commented:

“Wednesday, Aduro reported a 1Q18 loss of $21.5M—less than our estimate of $28.6M, with the discrepancy arising from a modest milestone payment from Merck coupled with lower-than-anticipated operational expenses. This fall, we expect to see first-in-human results from Novartis’ ongoing Phase 1 trials of Aduro’s STING agonist, ADU-S100, which could provide the next major catalyst for ADRO shares. Similar intratumoral therapies, including TLR9 agonists, have generated impressive clinical responses in combination with checkpoint inhibitors, and Aduro presented compelling preclinical evidence of similar synergies with ADU-S100 at AACR in April. Internally, Aduro continues to advance two promising clinical-stage assets, pLADD and BION-1301, and we believe the company’s comfortable cash runway, extending into early 2021, should continue to provide operational freedom. Reiterate Outperform and $13 target.”

According to TipRanks.com, Breidenbach is a 4-star analyst with an average return of 16.3% and a 43.1% success rate. Breidenbach covers the Healthcare sector, focusing on stocks such as Iovance Biotherapeutics Inc, Global Blood Therapeutics, and Sorrento Therapeutics.

Currently, the analyst consensus on Aduro BioTech is Strong Buy and the average price target is $16.88, representing a 132.8% upside.

In a report issued on April 26, H.C. Wainwright also maintained a Buy rating on the stock with a $9.50 price target.

See today’s analyst top recommended stocks >>

Conatus Pharmaceuticals (NASDAQ: CNAT)

Oppenheimer analyst Jay Olson reiterated a Buy rating on Conatus Pharmaceuticals (NASDAQ: CNAT) today and set a price target of $14. The company’s shares closed yesterday at $3.68, close to its 52-week low of $3.22.

Olson commented:

“CNAT announced 1Q18 net revenue of $9.7M vs. $8.9M consensus and EPS of ($0.17) in line with consensus estimates. Although POLT (2Q18) missed the primary endpoint of reduction in fibrosis in the overall population, it showed an anti-fibrotic effect in a pre-specified subpopulation (F3-F5). Detailed biopsy data from the trial will be presented at a later meeting. The company faces several catalysts with three additional Ph2 studies to report data. Management says CNAT is sufficiently funded ($67M cash) to complete the ongoing Ph2 trials. We see emricasan as a well- differentiated asset and are looking forward to the upcoming readout in the fibrotic NASH population (ENCORE-PH) in 4Q18. We reiterate our Outperform rating and $14 PT.”

According to TipRanks.com, Olson is ranked 0 out of 5 stars with an average return of -9.1% and a 33.3% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Eiger Biopharmaceuticals, and Spero Therapeutics Inc.

Conatus Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $17.25.

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