There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on AVEO Pharma (NASDAQ:AVEO) and Mersana Therapeutics Inc (NASDAQ:MRSN) with bullish sentiments.
AVEO Pharma (AVEO)
AVEO Pharma received a Buy rating and a $6.50 price target from H.C. Wainwright analyst Swayampakula Ramakanth today. The company’s shares closed yesterday at $2.18, close to its 52-week low of $1.86.
Ramakanth noted:
“We are initiating coverage of AVEO with 12- month price target of $6.50 per share. We derive our price target based on a risk-adjusted NPV analysis of projected tivozanib and ficlatuzumab revenues through 2030 assuming a 12.5% discount rate and 3% terminal growth rate.”
According to TipRanks.com, Ramakanth is a 4-star analyst with an average return of 6.7% and a 39.8% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as IntelGenx Technologies, Leap Therapeutics Inc, and Trillium Therapeutics.
Currently, the analyst consensus on AVEO Pharma is a Strong Buy with an average price target of $5.50.
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Mersana Therapeutics Inc (MRSN)
H.C. Wainwright analyst Debjit Chattopadhyay maintained a Buy rating on Mersana Therapeutics Inc today and set a price target of $16. The company’s shares closed yesterday at $12.71.
Chattopadhyay said:
“Our 12-month, $16 price target is based on a 13-year DCF-driven, sum-of-the-parts analysis. Our DCF is based on a: beta of 1.5, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 10.3%, and tax rate of 15% beginning in FY 2027. XMT-1522 has been eliminated from our model pending clarifications on the partial clinical hold. Our price target is now leveraged on Mersana’s wholly-owned XMT-1536, which we value at about $16/share given the potentially lower translational risks. Key risks include: emergence of ADC safety concerns, regulatory, and financials risks.”
According to TipRanks.com, Chattopadhyay is a 1-star analyst with an average return of 0.0% and a 42.8% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Jounce Therapeutics Inc.
Mersana Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $16, representing a 25.9% upside. In a report released yesterday, Cowen & Co. also maintained a Buy rating on the stock.
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