Analysts’ Top Healthcare Picks: Kala Pharmaceuticals Inc (KALA), Taiwan Liposome Company Ltd (TLC)


There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Kala Pharmaceuticals Inc (KALA), Taiwan Liposome Company Ltd (TLC) and ChemoCentryx (CCXI) with bullish sentiments.

Kala Pharmaceuticals Inc (KALA)

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Kala Pharmaceuticals Inc, with a price target of $15. The company’s shares closed yesterday at $8.62.

Selvaraju observed:

“As we roll forward the DCF analysis, the estimated market value of the firm has increased to $505M from $495M, which includes a discounted cash flow-based asset value of $580M for INVELTYS (100% probability of success) and KPI-121 0.25% (65% probability of success), with a 15% discount rate and 0.5%.”

According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.0% and a 36.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.

Currently, the analyst consensus on Kala Pharmaceuticals Inc is a Moderate Buy with an average price target of $33.

See today’s analyst top recommended stocks >>

Taiwan Liposome Company Ltd (TLC)

In a report released today, Oren Livnat from H.C. Wainwright maintained a Buy rating on Taiwan Liposome Company Ltd, with a price target of $10. The company’s shares closed yesterday at $5.97, close to its 52-week low of $5.02.

Livnat noted:

“Our $10 target is based on a 60% probability of success weighted DCF. Our model assumes approval and launch in the U.S. of TLC599 for knee OA, self-sold by TLC. We do not include any other explicit pipeline value in our model, nor do we include any value for potential ex-US sales or royalties beyond the current small base business. We project TLC profitability in 2025 and peak sales around $500M in 2030. Our DCF uses a 12% WACC-based discount rate, and negative 10% terminal growth beyond 2030. We don’t model a cliff because TLC599 has issued IP to 2033, plus potential IP to 2039.”

According to TipRanks.com, Livnat is a 4-star analyst with an average return of 9.1% and a 52.4% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Pacira Pharmaceuticals, and Jazz Pharmaceuticals.

Taiwan Liposome Company Ltd has an analyst consensus of Strong Buy, with a price target consensus of $10.67, which is a 78.6% upside from current levels. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $11 price target.

ChemoCentryx (CCXI)

In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on ChemoCentryx, with a price target of $23. The company’s shares closed yesterday at $10.33.

White noted:

“We are raising our price target to $23, up from $20, due to the impact of the passage of time on the NPV in our model, which was partially offset by dilution from the capital raise in January 2019. We base our $23 price target on probability- adjusted revenue forecasts for avacopan in AAV and C3G. We use the net present value of our revenue forecast through 2028, apply a 30% probability of success (POS) for avacopan in AAV, a 25% POS for avacopan in C3G, a 3x price/sales multiple, and use our estimated fully diluted year end 2019 net cash of $1.80/share to arrive at our price target.”

According to TipRanks.com, White is a 5-star analyst with an average return of 12.4% and a 46.9% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Aileron Therapeutics Inc.

ChemoCentryx has an analyst consensus of Strong Buy, with a price target consensus of $18.88.

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