Analysts Offer Insights on Healthcare Companies: Kala Pharmaceuticals Inc (KALA), Celyad (CYAD) and Tocagen Inc (TOCA)


There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Kala Pharmaceuticals Inc (NASDAQ:KALA), Celyad (NASDAQ:CYAD) and Tocagen Inc (NASDAQ:TOCA) with bullish sentiments.

Kala Pharmaceuticals Inc (KALA)

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Kala Pharmaceuticals Inc today and set a price target of $37. The company’s shares closed yesterday at $12.51, close to its 52-week low of $11.39.

Selvaraju wrote:

“Our 12-month price target is derived from a market value of the firm at $1.1B, which includes a discounted cash flow-based asset value of $1.1B for INVELTYS (100% probability of success) and KPI-121 0.25% (65% probability of success), with a 15% discount rate and 0.5% terminal growth rate.”

According to TipRanks.com, Selvaraju is ranked 0 out of 5 stars with an average return of -2.6% and a 39.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

Kala Pharmaceuticals Inc has an analyst consensus of Strong Buy, with a price target consensus of $33.67, which is a 169.1% upside from current levels. In a report issued on August 9, Wedbush also reiterated a Buy rating on the stock with a $47 price target.

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Celyad (CYAD)

In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Celyad, with a price target of $46. The company’s shares closed yesterday at $29.90, close to its 52-week low of $25.55.

White wrote:

“We are raising our price target to $46 from $45 due to higher estimated year end net cash per share. We base our price target on probability-adjusted revenue forecasts for CYAD-01 in r/r AML and third line metastatic CRC. We use the net present value of our revenue forecast through 2026, apply a 25% POS for AML and 20% POS for CRC, a 4x price/sales multiple. We include our year-end 2018 estimated fully diluted net cash of $4.39/share (assuming €1.00 = $1.15) to arrive at our price target. Our P/S multiple of 4x is in-line with Celyad’s peers that range between 2-5x.”

According to TipRanks.com, White is a 5-star analyst with an average return of 25.8% and a 54.9% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.

Celyad has an analyst consensus of Moderate Buy, with a price target consensus of $47.

Tocagen Inc (TOCA)

In a report released today, Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Tocagen Inc, with a price target of $14.50. The company’s shares closed yesterday at $8.84.

Ramakanth observed:

“We maintain our Buy rating of Tocagen and our 12-month price target of $14.50 per diluted share. We derive our price target based on a risk-adjusted NPV analysis of projected Toca 511 + Toca FC revenues through 2030 assuming a 12% discount rate and 2% terminal growth rate. We derive an rNPV of $402M for the products and add in pro forma net cash and cash equivalents of $82M to arrive at a 12-month price target of $14.40 per diluted share, which we round to $14.50.”

According to TipRanks.com, Ramakanth is a 4-star analyst with an average return of 8.2% and a 40.4% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Leap Therapeutics Inc.

Currently, the analyst consensus on Tocagen Inc is a Strong Buy with an average price target of $16.50, an 86.7% upside from current levels. In a report issued on August 13, B.Riley FBR also reiterated a Buy rating on the stock with a $15 price target.

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