Analysts’ Opinions Are Mixed on These Healthcare Stocks: Karyopharm Therapeutics (KPTI), Strongbridge Biopharma Plc (SBBP) and Jazz Pharmaceuticals (JAZZ)


Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Karyopharm Therapeutics (KPTI), Strongbridge Biopharma Plc (SBBP) and Jazz Pharmaceuticals (JAZZ).

Karyopharm Therapeutics (KPTI)

H.C. Wainwright analyst Edward White maintained a Buy rating on Karyopharm Therapeutics today and set a price target of $30. The company’s shares closed yesterday at $4.87, close to its 52-week low of $4.65.

White observed:

“We base our $30 price target on probability-adjusted revenue forecasts for selinexor. We use a net present value of our revenue forecast through 2026, apply a 50% probability of success (POS) for selinexor in penta refractory multiple myeloma, a 35% POS for selinexor in combination treatment for multiple myeloma, and a 25% POS for selinexor in DLBCL. We use a 4x P/S multiple and an estimated early stage pipeline value of $0.86/ share. Our P/S multiple of 4x is in-line with Karyopharm’s peers that range between 2-5x.”

According to TipRanks.com, White is a 5-star analyst with an average return of 13.0% and a 45.9% 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 Karyopharm Therapeutics with a $19.33 average price target.

See today’s analyst top recommended stocks >>

Strongbridge Biopharma Plc (SBBP)

H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Strongbridge Biopharma Plc today and set a price target of $18. The company’s shares closed yesterday at $4.89.

Fein observed:

“Our price target of $18/share is based on an equally weighted composite of: (a) $17.43/share, as a 35x multiple of taxed and diluted FY26 GAAP EPS of $2.38 discounted back to and (b) an NPV of $18.09/share (discount rate 11.5%, growth rate 2.5%). Risks to our investment thesis and target price include: (1) failure of COR-003 in clinical studies; (2) failure of COR-003 to secure regulatory approval; and (3) failure of COR-003 and/or Keveyis to achieve peak commercial revenue estimates in our model due to market size, penetration size, and/or pricing.”

According to TipRanks.com, Fein is a 5-star analyst with an average return of 8.6% and a 48.4% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.

Currently, the analyst consensus on Strongbridge Biopharma Plc is a Moderate Buy with an average price target of $13.50, which is a 176.1% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $12 price target.

Jazz Pharmaceuticals (JAZZ)

H.C. Wainwright analyst Oren Livnat maintained a Hold rating on Jazz Pharmaceuticals today and set a price target of $153. The company’s shares closed yesterday at $127.76.

Livnat noted:

“We’ve actually reduced our out-year sales estimates for all products besides Xyrem (see Figure 3), which further concentrates total company profits in that franchise. That puts additional pressure on our negative terminal growth rate assumption for the company after 2022 due to potential modest Xyrem franchise erosion from generic participation. To be clear, we model all other products still growing at that point, but we have to be conservative given we see nearly 70% of company gross profit still from Xyrem in 2022. Further, while guidance for Erwinaze—Jazz’s second largest product at this juncture—was surprisingly strong vs. low expectations, there remains a possibility that JAZZ could lose rights to the product after 2020. We don’t expect that to actually happen, but we have no certainty yet, and it still represents 6-7% of the consensus 2021-22 revenue.”

According to TipRanks.com, Livnat is a 4-star analyst with an average return of 5.5% and a 51.0% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Taiwan Liposome Company Ltd, and Pacira Pharmaceuticals.

Jazz Pharmaceuticals has an analyst consensus of Moderate Buy, with a price target consensus of $180.86.

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