There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on ImmunoGen (IMGN) and Cara Therapeutics (CARA) with bullish sentiments.
ImmunoGen (IMGN)
In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on ImmunoGen, with a price target of $18. The company’s shares closed yesterday at $4.78, close to its 52-week low of $3.80.
Chattopadhyay noted:
“Our 12-month, $18 price target on shares of ImmunoGen is based on a 13-year DCF-driven, sum-of-the-parts analysis. Our DCF analysis is based on: beta of 1.8, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 12.0%, and tax rate of 12% beginning in FY 2028. Note, our $18 price target is leveraged on the outcome of the mirvetuximab soravtansine’s Phase 3 FORWARD I study, which represents approximately 89% of our target (risk-adjusted NPV of $16 per share). Key risks to our valuation include: emergence of ADC-related safety concerns, clinical, regulatory, and financials risks. ImmunoGen, Inc.”
According to TipRanks.com, Chattopadhyay is ranked 0 out of 5 stars with an average return of -9.9% and a 34.9% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Mersana Therapeutics Inc.
Currently, the analyst consensus on ImmunoGen is a Moderate Buy with an average price target of $16.
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Cara Therapeutics (CARA)
In a report released today, Oren Livnat from H.C. Wainwright reiterated a Buy rating on Cara Therapeutics, with a price target of $26. The company’s shares closed yesterday at $14.56.
Livnat wrote:
“We view this as a positive development, bolstering our confidence that the statistically significant efficacy seen in Phase 2b (with just n=40-50 per arm) will translate to meaningful responder- rate separation in Phase 3 with n=175/arm. We previously highlighted after 3Q likely investor nervousness heading into this event, and the stock reflected it, down 31% in the last month and 46% from the end- September highs (vs. XBI down 14% and 25%, respectively). While we had never thought increasing the sample would be terribly ominous, in and of itself, we expect this news to serve as a material sentiment boost for investors. and we’d expect CARA to outperform heading toward expected 2Q19 KALM-1 top-line data.”
According to TipRanks.com, Livnat has 0 stars on 0-5 star ranking scale with an average return of -8.8% and a 42.9% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Taiwan Liposome Company Ltd, Zynerba Pharmaceuticals, and Pacira Pharmaceuticals.
Currently, the analyst consensus on Cara Therapeutics is a Strong Buy with an average price target of $26.50, implying an 82.0% upside from current levels. In a report issued on December 20, Janney Montgomery also initiated coverage with a Buy rating on the stock.
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