Analysts Offer Insights on Healthcare Companies: Axovant Sciences (AXON), Spectrum Pharmaceuticals (SPPI) and Jounce Therapeutics Inc (JNCE)


There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Axovant Sciences (NASDAQ:AXON), Spectrum Pharmaceuticals (NASDAQ:SPPI) and Jounce Therapeutics Inc (NASDAQ:JNCE) with bullish sentiments.

Axovant Sciences (AXON)

H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Axovant Sciences today and set a price target of $7. The company’s shares closed on Friday at $2.07, close to its 52-week low of $1.02.

Fein noted:

“Valuation and risks to the achievement of target price. Our price target of $7/share is based on an equally-weighted composite of: (a) $6.27/share, as a 35x multiple of taxed and diluted $2.30 discounted back to FY18 at 20% (in line with the expected PE multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $7.26/share (discounted cash flow analysis using a 15% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”

According to TipRanks.com, Fein is a 3-star analyst with an average return of 2.7% and a 45.9% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.

Currently, the analyst consensus on Axovant Sciences is a Hold with an average price target of $4.83.

See today’s analyst top recommended stocks >>

Spectrum Pharmaceuticals (SPPI)

In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Spectrum Pharmaceuticals, with a price target of $34. The company’s shares closed on Friday at $22.20, close to its 52-week high of $24.20.

White observed:

“We are raising our price target to $34 up from $33 due the higher year end cash per share estimate. Our price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.90 per share, the pipeline at $32.52 per share, and YE18 estimated fully diluted net cash of $1.65 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.13, discounted at 15%.”

According to TipRanks.com, White is a 5-star analyst with an average return of 25.4% and a 54.5% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.

Currently, the analyst consensus on Spectrum Pharmaceuticals is a Moderate Buy with an average price target of $30.

Jounce Therapeutics Inc (JNCE)

In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on Jounce Therapeutics Inc, with a price target of $13. The company’s shares closed on Friday at $8.37, close to its 52-week low of $6.56.

Chattopadhyay wrote:

“Our new 12-month, $13 price target, down from $19, for shares of Jounce is based on a 13-year DCF- driven, limited to the clinical indications being currently pursued by JTX-2011. Note, our target does not reflect any other investigational programs in Jounce’s pipeline. Our DCF is driven by: beta of 0.81, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 7.0%, and tax rate of 15% beginning in FY 2026. NSCLC (~91%) and HNSCC (~9%) together represent 100% our target. Of note, we have removed Melanoma, GC and TNBC from our valuations.”

According to TipRanks.com, Chattopadhyay is a 2-star analyst with an average return of 0.6% and a 43.0% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Mersana Therapeutics Inc, and Voyager Therapeutics Inc.

Currently, the analyst consensus on Jounce Therapeutics Inc is a Moderate Buy with an average price target of $13.20.

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