Analysts Offer Insights on Healthcare Companies: Biogen Inc (BIIB), Gilead Sciences (GILD) and AxoGen (AXGN)


There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Biogen Inc (BIIB), Gilead Sciences (GILD) and AxoGen (AXGN) with bullish sentiments.

Biogen Inc (BIIB)

Oppenheimer analyst Jay Olson maintained a Buy rating on Biogen Inc yesterday and set a price target of $290. The company’s shares closed yesterday at $228.81, close to its 52-week low of $216.12.

Olson observed:

“We examine several frequently asked questions in anticipation of 1Q results including: 1) what is BIIB’s long-term financial profile ex-aducanumab? 2) How sustainable is the MS business? 3) How sustainable is the SMA business? and 4) What sort of opitionality is available for business development purposes? We continue to view the sharp sell-off in BIIB shares as an over-reaction—our DCF and SOTP valuations still support a $290 valuation without Alzheimer’s. We remain confident in the cash- generating strength of BIIB’s foundational businesses including MS and SMA, where we estimate total revenue of $11B in 2019 gradually declining to $4B in 2030. We update our model based on script data and other small adjustments. We maintain our Outperform rating with details inside.”

According to TipRanks.com, Olson is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -6.1% and a 36.5% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Conatus Pharmaceuticals, and Enanta Pharmaceuticals.

The word on The Street in general, suggests a Hold analyst consensus rating for Biogen Inc with a $260.91 average price target.

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Gilead Sciences (GILD)

In a report released yesterday, Hartaj Singh from Oppenheimer maintained a Buy rating on Gilead Sciences, with a price target of $85. The company’s shares closed yesterday at $61.87, close to its 52-week low of $60.32.

Singh commented:

“We hosted an investor conference call ( replay until 04/25) with a high-prescribing key opinion leader (KOL) on the RA Landscape and new treatments on 04/18/19. We previously published our thoughts that filgotinib looks to be a best-in-class JAK1, and our interview helped us refine what a successful filgotinib launch could look like. Our KOL’s usage of JAK1’s is mostly limited to tofacitinib (Xeljanz) for approximately 6% of her total RA patients; future usage will grow steadily with a best- in-class JAK1 accruing the majority of patient switches and new starts for the class. Counterintuitively, we believe that GILD’s JAK1 competitors are preparing a JAK1 RA market for filgotinib switchers. We stay bullish on filgotinib and GILD.”

According to TipRanks.com, Singh is a 3-star analyst with an average return of 1.4% and a 39.2% success rate. Singh covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Strongbridge Biopharma Plc, and Catabasis Pharmaceuticals.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Gilead Sciences with a $81.40 average price target, implying a 31.6% upside from current levels. In a report issued on April 10, UBS also upgraded the stock to Buy with a $77 price target.

AxoGen (AXGN)

In a report released yesterday, Ryan Zimmerman from BTIG maintained a Buy rating on AxoGen, with a price target of $28. The company’s shares closed yesterday at $20.19, close to its 52-week low of $14.13.

Zimmerman commented:

“We maintain our Buy rating and $28 PT on AXGN shares following news on the RECON trial. As expected, AXGN and the FDA agreed to a one-time enrollment expansion of AXGN’s RECON trial. The trial size will increase to 220 participants from the previously assumed 170. Result of this change support reducing pooled standard deviation (a measure of variability within each study arm, not between). We have always expected that AXGN would be required to increase the study size as the original study plan was laid out in 2011. The key question (in our view) was around the magnitude of the increase. While 50 patients will add increased time to trial completion, we do not see the change as derailing AXGN’s ability to receive a BLA. The delay may impact AXGN’s competitive positioning relative to others who may come in the future but does not preclude AXGN from the ability to sell either.”

According to TipRanks.com, Zimmerman is a 5-star analyst with an average return of 32.8% and a 65.6% success rate. Zimmerman covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Integra Lifesciences, and OrthoPediatrics Corp.

Currently, the analyst consensus on AxoGen is a Strong Buy with an average price target of $29.67, which is a 47.0% upside from current levels. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $26 price target.

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