There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Spectrum Pharmaceuticals (SPPI) and Coherus Biosciences (CHRS) with bullish sentiments.
Spectrum Pharmaceuticals (SPPI)
In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Spectrum Pharmaceuticals, with a price target of $40. The company’s shares closed yesterday at $12.84, close to its 52-week low of $11.52.
White wrote:
“Our $40 price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.49 per share, the pipeline at $12.24 per share, and YE18 estimated fully diluted net cash of $1.33 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.10, discounted at 15%. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 3x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 14.9% and a 46.6% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.
Spectrum Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $34.50.
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Coherus Biosciences (CHRS)
Maxim Group analyst Jason McCarthy maintained a Buy rating on Coherus Biosciences today and set a price target of $25. The company’s shares closed yesterday at $11.93.
McCarthy commented:
“Coherus reported 3Q18 with a net loss of ($59M) and ended the period with $117M in cash. Expenses rose in the quarter, mainly due to commercial preparation including a building sales force for the launch of UDENYCA, biosimilar to Neulasta (pegfilgrastim) in the US. UDENYCA was approved on 11/2 in the US (and on 9/21 in Europe). We do expect the company is going to need to raise capital, which in our view, may be keeping CHRS shares relatively flat around the US approval.”
According to TipRanks.com, McCarthy is a 4-star analyst with an average return of 5.3% and a 40.9% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, ContraVir Pharmaceuticals Inc, and Sonoma Pharmaceuticals Inc.
Coherus Biosciences has an analyst consensus of Strong Buy, with a price target consensus of $32.67, implying a 173.8% upside from current levels. In a report issued on November 2, Cowen & Co. also maintained a Buy rating on the stock with a $45 price target.
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