There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Momenta Pharma (MNTA) and Arqule (ARQL) with bullish sentiments.
Momenta Pharma (MNTA)
Stifel Nicolaus analyst Derek Archila maintained a Buy rating on Momenta Pharma today and set a price target of $29. The company’s shares opened today at $13.06, close to its 52-week low of $9.55.
Archila commented:
“We continue to believe the current valuation is a compelling entry point for investors and we believe the stock should begin to work in anticipation of POC results. We think shares could trade to the ~$40 range if data are positive. 1Q19 product revenue related to NVS/Sandoz’s (NC, $81.91) Glatopa sales was ~ $2 million. Growing Glatopa collaboration revenue is not core to our MNTA Buy thesis, though we do like the modest cash offset the revenue provides. The competitive nature of this market will most likely continue and probably increase in intensity over time, so our out year forecasts for Glatopa product revenue do get more conservative based on today’s update, moving down to $24 from $45 million.”
According to TipRanks.com, Archila ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -9.6% and a 31.7% success rate. Archila covers the Healthcare sector, focusing on stocks such as DBV Technologies SA – American, Rhythm Pharmaceuticals Inc, and Principia Biopharma Inc.
Momenta Pharma has an analyst consensus of Moderate Buy, with a price target consensus of $22.50.
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Arqule (ARQL)
In a report released today, Hartaj Singh from Oppenheimer maintained a Buy rating on Arqule, with a price target of $8. The company’s shares opened today at $6.48, close to its 52-week high of $7.21.
Singh commented:
“ArQule (ARQL) reported 1Q19 sales/earnings and provided a business update to investors on 05/01. The company is in the midst of transformative clinical updates over the next 6-12 months for its two proprietary lead programs, miransertib and ARQ 531. The miransertib’s registrational (approvable) clinical trial for rare disorders Proteus syndrome and PIK3CA-Related Overgrowth Spectrum (PROS) has been approved and site selection, activation and patient recruitment are starting. For ARQ 531 (reversible BTK inhibitor), potentially material updates at EHA (mid-2019) and ASH (early Dec.) could give additional insight into safety and clinical activity. ARQL is also preparing for the dose expansion part of ARQ 531 Phase 1b/2 clinical trial; potentially identifying fast-to-market tumor subtypes (part of our ARQL bull thesis). We updated our estimates and stay bullish.”
According to TipRanks.com, Singh is a 3-star analyst with an average return of 1.3% and a 40.5% success rate. Singh covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Strongbridge Biopharma Plc, and Catabasis Pharmaceuticals.
Currently, the analyst consensus on Arqule is a Strong Buy with an average price target of $8.94, implying a 38.0% upside from current levels. In a report issued on April 29, Roth Capital also maintained a Buy rating on the stock with a $10 price target.
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