There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Stealth Biotherapeutics Corp (MITO), T2 Biosystems (TTOO) and Forty Seven Inc (FTSV) with bullish sentiments.
Stealth Biotherapeutics Corp (MITO)
In a report released today, Ram Selvaraju from H.C. Wainwright initiated coverage with a Buy rating on Stealth Biotherapeutics Corp and a price target of $30. The company’s shares closed yesterday at $12.26, close to its 52-week low of $11.11.
Selvaraju observed:
“Our valuation of Stealth BioTherapeutics Corp. is based on a discounted cash flow (DCF)-based assessment. This ascribes a 60% probability of approval to elamipretide in 45% likelihood of approval Barth syndrome, a 35% likelihood of approval in 20% likelihood of approval in dry AMD. We utilize a 15% discount rate to all future cash flows and employ a 0.5% terminal growth rate. This yields a $1.25B market value of the firm, which corresponds to a price objective of $2.50 per ordinary share assuming 501M common shares outstanding at the end of 2Q20.”
According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 1.3% and a 30.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Currently, the analyst consensus on Stealth Biotherapeutics Corp is a Moderate Buy with an average price target of $29.
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T2 Biosystems (TTOO)
In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on T2 Biosystems, with a price target of $10. The company’s shares closed yesterday at $1.83, close to its 52-week low of $1.35.
According to TipRanks.com, Chen is ranked 0 out of 5 stars with an average return of -25.6% and a 34.2% success rate. Chen covers the Healthcare sector, focusing on stocks such as Aerpio Pharmaceuticals Inc, HTG Molecular Diagnostics, and Aslan Pharmaceuticals Ltd.
T2 Biosystems has an analyst consensus of Strong Buy, with a price target consensus of $8.60.
Forty Seven Inc (FTSV)
In a report released today, Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Forty Seven Inc, with a price target of $21. The company’s shares closed yesterday at $11.09, close to its 52-week low of $9.90.
Ramakanth commented:
“We maintain our Buy rating on FTSV and our 12-month price target of $21.00 per share. We derive our price target based on a risk-based NPV (rNPV) analysis of projected 5F9 revenues through 2030 assuming a 12% discount rate and a 3% terminal growth rate. We derive rNPV of $1.1B for 5F9 and add in cash, cash equivalents, and short-term investments of $114M to arrive at a 12-month price target of $20.57 per diluted share, which we round to $21.00.”
According to TipRanks.com, Ramakanth is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -10.4% and a 30.3% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Gritstone Oncology Inc.
Forty Seven Inc has an analyst consensus of Strong Buy, with a price target consensus of $27.80, which is a 150.7% upside from current levels. In a report issued on June 6, JonesTrading also maintained a Buy rating on the stock with a $30 price target.
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