Analysts’ Top Healthcare Picks: Aeterna Zentaris (AEZS), Amarin (AMRN)


There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Aeterna Zentaris (AEZS) and Amarin (AMRN) with bullish sentiments.

Aeterna Zentaris (AEZS)

In a report released today, Swayampakula Ramakanth from H.C. Wainwright reiterated a Buy rating on Aeterna Zentaris, with a price target of $5.50. The company’s shares closed yesterday at $3.60.

Ramakanth noted:

“We maintain our Buy rating of AEZS and raise our 12-month price target to $5.50 per share, up from $3.00. We derive our price target using a risk-adjusted net present value analysis of potential US and EU royalties, discounted at 18%, to reach a total rNPV of $66M for the royalty streams. To this we add net cash of $17M, less long-term liabilities of $15M, and add expected European license payment of $55M, to reach an enterprise value of $132M. Based on this analysis, we derive a price target of $5.72 per diluted share, which we round to $5.50.”

According to TipRanks.com, Ramakanth is ranked 0 out of 5 stars with an average return of -5.3% and a 32.4% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Collplant Holdings Ltd.

Currently, the analyst consensus on Aeterna Zentaris is a Moderate Buy with an average price target of $3.

See today’s analyst top recommended stocks >>

Amarin (AMRN)

H.C. Wainwright analyst Andrew Fein maintained a Buy rating on Amarin today and set a price target of $51. The company’s shares closed yesterday at $16.61.

Fein wrote:

“Our PT of $51 is based on equally weighted average of: (a) $40.73/share, as a 25x multiple of taxed and diluted FY29 GAAP EPS of $6.59 discounted back to and (b) an NPV of $60.70/share (discount rate 10%, growth rate 2%). Risks to our investment thesis and target price include: (1) Vascepa commercial ramp-up and/or peak sales not meeting our projections; and (2) further competitive disruption of the omega-3 market by branded drugs or generics and/ or OTC supplements beyond our model.”

According to TipRanks.com, Fein is a 5-star analyst with an average return of 7.6% and a 45.9% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.

Amarin has an analyst consensus of Strong Buy, with a price target consensus of $30.20, which is an 81.8% upside from current levels. In a report issued on January 6, Cantor Fitzgerald also maintained a Buy rating on the stock with a $35 price target.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Read More on AMRN:

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts