Analysts Offer Insights on Healthcare Companies: Epizyme (EPZM), Mirati Therapeutics (MRTX) and Leap Therapeutics Inc (LPTX)


There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Epizyme (NASDAQ:EPZM), Mirati Therapeutics (NASDAQ:MRTX) and Leap Therapeutics Inc (NASDAQ:LPTX) with bullish sentiments.

Epizyme (EPZM)

H.C. Wainwright analyst Andrew Fein maintained a Buy rating on Epizyme today and set a price target of $25. The company’s shares closed yesterday at $8.28, close to its 52-week low of $7.96.

Fein noted:

“Our price target of $25 for EPZM is based on a probability-adjusted sum-of-parts NPV-DCF: $3.1 (Taz, DLBCL, EZH2mut) + $16.2 (Taz, FL, EZH2mut) + $1.3 (Taz, INI- solid tumor) + $0.9 (DOT1L inhibitor) + $3.1 (cash). Risks to our investment thesis and target price include: (1) failure in clinical trials; (2) failure to secure regulatory approvals; and (3) a smaller-than-anticipated commercial opportunity due to market sizing, competition, and pricing.”

According to TipRanks.com, Fein is a 5-star analyst with an average return of 11.3% and a 46.3% 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 Epizyme is a Strong Buy with an average price target of $21.25, which is a 156.6% upside from current levels. In a report released yesterday, Roth Capital also maintained a Buy rating on the stock with a $18 price target.

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Mirati Therapeutics (MRTX)

H.C. Wainwright analyst Edward White maintained a Buy rating on Mirati Therapeutics today and set a price target of $65. The company’s shares closed yesterday at $34.01.

White commented:

“We derive our $65 from a sum-of-the-parts analysis based on probability adjusted revenue forecasts for sitravatinib and mocetinostat. We use the net present value of our revenue forecast through 2027, apply a 50% probability of success (POS) for sitravatinib monotherapy, a 45% POS for sitravatinib in combination with checkpoint inhibitors, 15% POS for mocetinostat, our YE2018 fully diluted net cash estimate of $4.66/share, and we value the early stage pipeline at $4.38/share to arrive at our price target. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 4x.”

According to TipRanks.com, White is a 5-star analyst with an average return of 14.4% and a 44.7% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.

Currently, the analyst consensus on Mirati Therapeutics is a Strong Buy with an average price target of $66.40, representing a 95.2% upside. In a report released yesterday, Cowen & Co. also maintained a Buy rating on the stock.

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Leap Therapeutics Inc (LPTX)

In a report released today, Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Leap Therapeutics Inc, with a price target of $12.50. The company’s shares closed yesterday at $5.75, close to its 52-week low of $5.15.

Ramakanth commented:

“We maintain our Buy rating of Leap Therapeutics and our 12-month price target of $12.50 per diluted share. We derive our price target based on a risk-adjusted NPV analysis of projected DKN-01 and TRX518 revenues through 2030 assuming a 12% discount rate and 2% terminal growth rate. We derive an rNPV of $614M for the products and add in cash and cash equivalents of $30M to arrive at a 12-month price target of $12.38 per diluted share, which we round to $12.50.”

According to TipRanks.com, Ramakanth is a 2-star analyst with an average return of 0.6% and a 34.6% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Tyme Technologies Inc.

Leap Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $12.50.

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