There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Obalon Therapeutics Inc (NASDAQ:OBLN) and Clovis Oncology (NASDAQ:CLVS) with bullish sentiments.
Obalon Therapeutics Inc (OBLN)
In a report issued on August 2, Sean Lavin from BTIG maintained a Buy rating on Obalon Therapeutics Inc, with a price target of $3.50. The company’s shares closed on Friday at $1.63, close to its 52-week low of $1.46.
Lavin observed:
“2Q18 results came in light. Though reordering trends were strong in the quarter (+220% sequentially), new accounts sold came in below our expectations. As the company remains in the early innings of its commercial ramp, it appears this quarter that there continues to be refinement of the sales pitch and go-to-market strategy. Going forward, much of the sales focus will be on more productive accounts with OBLN establishing new clinical programs to assist with imaging acquisition – the biggest barrier to initial uptake. We trim our FY18 revenue estimates once again as we think it will take more time for some of these initiatives to bear fruit. In thinking about shares, we think the upcoming investor call (perhaps early September) to more explicitly discuss the marketing strategy and/or PMA approval of the Navigator system in 1H19 may lift sentiment.”
According to TipRanks.com, Lavin is a 5-star analyst with an average return of 14.9% and a 63.8% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tactile Systems Technology, and Boston Scientific Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Obalon Therapeutics Inc with a $2.75 average price target, representing a 68.7% upside. In a report issued on August 2, Canaccord Genuity also maintained a Buy rating on the stock with a $2.50 price target.
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Clovis Oncology (CLVS)
J.P. Morgan analyst Cory Kasimov maintained a Buy rating on Clovis Oncology on August 1 and set a price target of $87. The company’s shares closed on Friday at $37.68, close to its 52-week low of $37.05.
Kasimov said:
“CLVS reported an in line quarter this afternoon with Rubraca sales coming in at $23.8M vs. cons of $23.1M / JPMe $21.7M (recall CLVS recently received approval for the maintenance setting in the US on April 6 th and for the treatment setting in the EU on May 29). Management mostly reiterated clinical trial timelines and provided updates to the upcoming lucitanib program (combo trials of lucitanib + Rubraca and lucitanib + PD-1 are expected to begin by 1Q19). Bottom line: we believe CLVS is well positioned into TRITON-2 (prostate cancer) data at ESMO in October and see long term value in CLVS’s wholly owned PARP inhibitor given this near term catalyst and substantial prospects for label expansions into other solid tumors. Maintain OW.”
According to TipRanks.com, Kasimov is a 3-star analyst with an average return of 2.5% and a 41.4% success rate. Kasimov covers the Healthcare sector, focusing on stocks such as ACADIA Pharmaceuticals Inc, Global Blood Therapeutics, and Jounce Therapeutics Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Clovis Oncology with a $73.67 average price target.
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