There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Kadmon Holdings (KDMN), TG Therapeutics (TGTX) and Rigel (RIGL) with bullish sentiments.
Kadmon Holdings (KDMN)
In a report released today, Andrew Fein from H.C. Wainwright maintained a Buy rating on Kadmon Holdings, with a price target of $25. The company’s shares closed yesterday at $2.48, close to its 52-week low of $1.88.
“Our price target of $25 is based on a probability adjusted sum-of-parts $12 from KD025 in cGVHD + $12 from tesevatinib in PKD + $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 9.1% and a 45.3% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.
Kadmon Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $13.95.
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TG Therapeutics (TGTX)
H.C. Wainwright analyst Edward White maintained a Buy rating on TG Therapeutics today and set a price target of $20. The company’s shares closed yesterday at $5.23, close to its 52-week low of $4.20.
“Our $20 price target is based on the net present value of our revenue forecast through 2026, applying a 45% probability of success (POS) for ublituximab in CLL, a 45% POS for umbralisib in 25% POS for both ublituximab and umbralisib in NHL. We use a 4x price/sales multiple for these products, an early stage pipeline value of $2.84/share, and fully diluted net cash of $0.75/share to arrive at our price target. Our P/S multiple of 4x is in-line with TG’s peers that range between 2-5x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 16.7% and a 46.2% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
TG Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $21.75.
In a report released today, Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Rigel, with a price target of $7.50. The company’s shares closed yesterday at $3.08.
“Valuation and impediments to achieving price target. We reiterate our Buy rating and $7.50 price target. Our price target is based on our clinical net present value (NPV) model, which derives its value from Tavalisse without any current contribution from pipeline assets. This model allows us to flex multiple assumptions affecting a drug’s potential commercial profile. Factors which could impede reaching our price target include failed or inconclusive clinical trials or inability of the company to secure adequate funding to progress its drugs through the development pathway.”
According to TipRanks.com, Pantginis is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -16.1% and a 28.7% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Applied Genetic Technologies, Checkpoint Therapeutics Inc, and Strata Skin Sciences Inc.
Currently, the analyst consensus on Rigel is a Strong Buy with an average price target of $8.13, implying a 164.0% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $9 price target.
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