There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Tesaro (NASDAQ:TSRO), BioCryst (NASDAQ:BCRX) and MannKind (NASDAQ:MNKD) with bullish sentiments.
Tesaro (TSRO)
H.C. Wainwright analyst Edward White maintained a Buy rating on Tesaro today and set a price target of $69. The company’s shares closed yesterday at $33.12, close to its 52-week low of $25.62.
White noted:
“Our $69 price target is based on a sum-of-the-parts (SOTP) analysis of TESARO. We include a value of $33.34/share, based on 40x our 2021 non-GAAP EPS estimate of $0.98; $31.65/share, based on the present value of our 2026 Zejula sales estimate of $2.5 billion, adjusted for a 3x P/S multiple, discounted at 15% and $4.45/ share for TESARO’s early-stage immuno-oncology pipeline. Our 40x P/E multiple is within the range of 20-50x of midcap biotech companies. Our P/S multiple of 3x is in line with TESARO’s peers that range between 2-5x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 26.4% and a 56.8% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Tesaro with a $54.27 average price target, representing a 63.9% upside. In a report released yesterday, Oppenheimer also assigned a Buy rating to the stock with a $83 price target.
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BioCryst (BCRX)
In a report released today, Andrew Fein from H.C. Wainwright maintained a Buy rating on BioCryst, with a price target of $13. The company’s shares closed yesterday at $7.59, close to its 52-week high of $7.62.
Fein commented:
“Valuation and risks to achievement of price target. Our price target of $13 is based on the following risk-adjusted sum-of parts NPV-DCF: $10.7 for oral HAE prophylactic treatment + $1.1 for oral liquid HAE acute treatment + $0.3 for peramivir + $1.2 in cash. We assume a discount rate of 13.5%.”
According to TipRanks.com, Fein is a 4-star analyst with an average return of 4.1% and a 47.9% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for BioCryst with a $9.88 average price target.
MannKind (MNKD)
In a report released today, Oren Livnat from H.C. Wainwright reiterated a Buy rating on MannKind, with a price target of $4. The company’s shares closed yesterday at $2.08.
Livnat noted:
“Our $4 target is based on a DCF reflecting only U.S. Afrezza sales, assuming a strong sales ramp in 2019 and beyond, and peak potential approaching $500M. We do not yet explicitly include any Technosphere Treprostinil (TreT) for PAH in our estimates as we are awaiting more development pathway clarity from MannKind’s partner, United Therapeutics. We apply a 16% WACC discount rate, and 2% terminal growth beyond 2026 (or 6x terminal EBITDA multiple).”
According to TipRanks.com, Livnat is a 3-star analyst with an average return of 4.0% and a 59.5% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Zynerba Pharmaceuticals, Pacira Pharmaceuticals, and Jazz Pharmaceuticals.
MannKind has an analyst consensus of Moderate Buy, with a price target consensus of $4.
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