There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Aratana (PETX), Karyopharm Therapeutics (KPTI) and Dermira (DERM) with bullish sentiments.
Aratana (PETX)
H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Aratana today and set a price target of $10. The company’s shares closed yesterday at $3.80, close to its 52-week low of $3.30.
Ramakanth noted:
“We maintain our Buy rating of PETX and our 12-month price target of $10.00 per share. We derive our price target based on a risk-adjusted net present value analysis (rNPV) of projected product revenues through 2027 assuming a 10% discount rate and a 3% terminal growth rate. We derive an rNPV of $460M for the products and add in $42.7M in cash and cash equivalents to arrive at a 12-month price target of $9.53 per diluted share, which we round to $10.00. (1) clinical; (2) partnership; (3) commercial; (4) financial; and (5) intellectual property.”
According to TipRanks.com, Ramakanth is a 1-star analyst with an average return of -1.5% and a 36.7% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Collplant Holdings Ltd, Gritstone Oncology Inc, and Trillium Therapeutics.
Currently, the analyst consensus on Aratana is a Moderate Buy with an average price target of $5, implying a 31.6% upside from current levels. In a report issued on March 13, Credit Suisse also maintained a Buy rating on the stock with a $5 price target.
See today’s analyst top recommended stocks >>
Karyopharm Therapeutics (KPTI)
H.C. Wainwright analyst Edward White maintained a Buy rating on Karyopharm Therapeutics today and set a price target of $29. The company’s shares closed yesterday at $4.40, close to its 52-week low of $3.92.
White commented:
“We remind investors that on Committee (ODAC) met to discuss the selinexor NDA and voted eight to five recommending that the FDA wait for the results from Karyopharm’s randomized, open-label, Phase 3 BOSTON study evaluating selinexor in patients with relapsed or refractory multiple myeloma, before making a final decision regarding approval. Although the FDA considers the recommendation of this panel, it does not have to follow the recommendations by the panel. Delay could be a positive. Following the ODAC meeting, the FDA requested, and Karyopharm submitted, additional existing clinical information as an amendment to the NDA, which allowed the FDA to extend the PDUFA action date by three months.”
According to TipRanks.com, White is a 5-star analyst with an average return of 13.0% and a 47.4% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Aileron Therapeutics Inc.
Currently, the analyst consensus on Karyopharm Therapeutics is a Moderate Buy with an average price target of $13.17, implying a 199.3% upside from current levels. In a report issued on March 1, RBC Capital also maintained a Buy rating on the stock with a $16 price target.
Dermira (DERM)
H.C. Wainwright analyst Douglas Tsao maintained a Buy rating on Dermira today and set a price target of $13. The company’s shares closed yesterday at $6.91, close to its 52-week low of $6.00.
Tsao said:
“Our $13 price target for Dermira is based on our sum of the parts NPV valuation based on the company’s two primary development programs, Qbrexza and lebrikizumab. Our DCF model utilizes a discount rate of 9.9%, which is based on the company’s equity cost of capital of 9.9% (Beta of 1.0, equity risk premium of 6.7%). We adjust each indication for probability of success with Qbrexza at 100% as a commercialized asset and lebrikizumab at 35% as a Phase 2 asset. We apply a -5% Dermira, Inc.”
According to TipRanks.com, Tsao is a 2-star analyst with an average return of 0.4% and a 48.7% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Revance Therapeutics, and Radius Health.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Dermira with a $15.75 average price target, representing a 127.9% upside. In a report issued on March 1, Cantor Fitzgerald also assigned a Buy rating to the stock with a $20 price target.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
