There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Celldex (CLDX), Chiasma (CHMA) and DBV Technologies SA – American (DBVT) with bullish sentiments.
Celldex (CLDX)
H.C. Wainwright analyst Joseph Pantginis maintained a Buy rating on Celldex today and set a price target of $19. The company’s shares closed yesterday at $4.60, close to its 52-week low of $2.75.
Pantginis wrote:
“Valuation and risks to price target achievement. We maintain our Buy rating and are adjusting our price target to $19 from pre-reverse split target of $2.15. The adjustments to our price target include the following: (1) adjustment for the 15 reverse split; (2) adjustment to base year; and (3) adjusting our projected launch years for and varlilumab (2023 to 2026). With regard to valuation contribution, CDX-1140 and CDX-3379 each contribute 15% to our valuation and varlilumab conributes 70%.”
According to TipRanks.com, Pantginis has currently no stars on a ranking scale of 0-5 stars, with an average return of -18.0% and a 25.7% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Applied Genetic Technologies, Iovance Biotherapeutics Inc, and Checkpoint Therapeutics Inc.
Celldex has an analyst consensus of Hold.
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Chiasma (CHMA)
In a report released today, Douglas Tsao from H.C. Wainwright maintained a Buy rating on Chiasma, with a price target of $11. The company’s shares closed yesterday at $5.84, close to its 52-week high of $6.14.
Tsao observed:
“Our $11 price target is based on our DCF valuation. Our DCF model utilizes a terminal rate of decline of 10%, and a WACC-based discount rate of 10.0% (Beta of 1.0, equity risk premium of 5.6%). We assume a 21% tax rate. We apply an 75% risk adjustment to our valuation to account for probability of success for the U.S. and European trials. We currently apply a negative terminal growth rate to account for potential launches by competitors. However, our valuation does not include potential new applications of Chiasma’s TPE platform technology.”
According to TipRanks.com, Tsao is a 2-star analyst with an average return of 0.1% and a 49.1% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Revance Therapeutics, and Radius Health.
Currently, the analyst consensus on Chiasma is a Strong Buy with an average price target of $13, implying a 122.8% upside from current levels. In a report released yesterday, Cantor Fitzgerald also initiated coverage with a Buy rating on the stock.
DBV Technologies SA – American (DBVT)
H.C. Wainwright analyst Andrew Fein maintained a Buy rating on DBV Technologies SA – American today and set a price target of $25. The company’s shares closed yesterday at $8.50.
Fein noted:
“Our $25/share price target is based on an equally weighted composite of: (a) $24/share, as a 20x multiple of taxed and diluted FY25 GAAP EPS of $7.17 discounted back to FY19 at 35%;and (b) an NPV of $25/share (discount rate 12.5%, growth rate 2.5%). Risks to our investment thesis and target price include: (1) failure in clinical studies; (2) failure to secure regulatory approval; and (3) smaller than anticipated commercial opportunity due to market size, competition, and pricing.”
According to TipRanks.com, Fein is a 5-star analyst with an average return of 8.4% and a 46.7% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, Proteostasis Therapeutics Inc, and ACADIA Pharmaceuticals Inc.
Currently, the analyst consensus on DBV Technologies SA – American is a Hold with an average price target of $12.71, implying a 49.5% upside from current levels. In a report issued on February 27, JMP Securities also reiterated a Buy rating on the stock with a $20 price target.
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