There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Aerie Pharma (AERI), Neurocrine (NBIX) and Homology Medicines Inc (FIXX) with bullish sentiments.
Aerie Pharma (AERI)
In a report released today, Oren Livnat from H.C. Wainwright reiterated a Buy rating on Aerie Pharma, with a price target of $73. The company’s shares closed yesterday at $45.82.
Livnat commented:
“Our $73 DCF-based target is based on worldwide sales of Rhopressa and Rocklatan, and does not yet give any for the earlier stage retina pipeline. We see profitability quickly in 2020.”
According to TipRanks.com, Livnat is a 4-star analyst with an average return of 10.8% and a 55.8% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Taiwan Liposome Company Ltd, and Pacira Pharmaceuticals.
Currently, the analyst consensus on Aerie Pharma is a Strong Buy with an average price target of $78.86, implying a 72.1% upside from current levels. In a report issued on February 26, Oppenheimer also maintained a Buy rating on the stock with a $64 price target.
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Neurocrine (NBIX)
In a report released today, Andrew Fein from H.C. Wainwright reiterated a Buy rating on Neurocrine, with a price target of $102. The company’s shares closed yesterday at $80.97.
Fein commented:
“Our price target of $102/share is based on an equally weighted composite of: (a) $106/share, as a 35x multiple of taxed and diluted FY25 GAAP EPS of $9.01 discounted back to and (b) an NPV of $98/share (discount rate 10%, growth rate 2%). We base our valuation on a 20% royalty on sales for Elagolix in endometriosis and uterine fibrosis (probability adjusted). For valbenazine, we include the indication of TD. For opicapone, we include the US revenue (63% goes to 90% POS.”
According to TipRanks.com, Fein is a 5-star analyst with an average return of 9.6% and a 48.5% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.
Currently, the analyst consensus on Neurocrine is a Moderate Buy with an average price target of $106.10, representing a 31.0% upside. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $127 price target.
Homology Medicines Inc (FIXX)
In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on Homology Medicines Inc, with a price target of $36. The company’s shares closed yesterday at $25.99.
Chattopadhyay said:
“Our $36 price target is derived from a risk-adjusted, sum-of-the-parts analysis that drives our DCF, which is based on: beta of 1.05, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 8.0%, and tax rate of 15% beginning in FY 2028. Three programs contribute to 100% of our target, including: (1) gene therapy for adult patients with classic PKU, HMI-102 represents 66%; (2) HMI-103, a genome editing program for pediatric PKU contributes about 23%; and (3) HMI-202, an IV gene therapy construct for a one-and-done option for late onset infantile metachromatic leukodystrophy forms the remainder.”
According to TipRanks.com, Chattopadhyay is a 3-star analyst with an average return of 2.2% and a 46.4% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Mersana Therapeutics Inc.
Currently, the analyst consensus on Homology Medicines Inc is a Moderate Buy with an average price target of $36.50.
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