There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Aerpio Pharmaceuticals Inc (ARPO) and Sarepta Therapeutics (SRPT) with bullish sentiments.
Aerpio Pharmaceuticals Inc (ARPO)
H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Aerpio Pharmaceuticals Inc today and set a price target of $10. The company’s shares closed on Friday at $3.45.
Selvaraju said:
“Our 12-month price target is derived from a market value of the firm at $395M, which includes a discounted cash flow-based asset value for AKB-9778 and AKB-4924, using a 15% discount rate and 2% terminal growth rate, and probabilities of success at 30% and 10%, respectively. Risks include, but are not limited to: (1) failure of AKB-9778 or AKB-4924 in clinical trials; (2) failure of AKB-9778 or AKB-4924 to secure regulatory approval; (3) failure of AKB-9778 or AKB-4924 to achieve commercial success due to market size, penetration rate, or competition; and (4) potential dilution risk.”
According to TipRanks.com, Selvaraju ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -12.3% and a 30.5% 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 Aerpio Pharmaceuticals Inc with a $8 average price target, a 131.9% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $8 price target.
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Sarepta Therapeutics (SRPT)
In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on Sarepta Therapeutics, with a price target of $267. The company’s shares closed on Friday at $127.87.
Chattopadhyay said:
“Our $267 price target is derived from a risk-adjusted (does not include CMT or Sanfilippo A) DCF analysis and is based on: beta of 1.42, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 7.4%, and tax rate of 15% beginning in FY 2024.”
According to TipRanks.com, Chattopadhyay ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -4.0% and a 41.5% 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 Sarepta Therapeutics is a Strong Buy with an average price target of $197, a 54.1% upside from current levels. In a report issued on January 30, Piper Jaffray also maintained a Buy rating on the stock with a $200 price target.
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