Analysts’ Top Healthcare Picks: Novavax (NVAX), Globus Medical (GMED)


There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Novavax (NVAX) and Globus Medical (GMED) with bullish sentiments.

Novavax (NVAX)

Oppenheimer analyst Kevin DeGeeter maintained a Buy rating on Novavax yesterday and set a price target of $1.25. The company’s shares closed yesterday at $0.53, close to its 52-week low of $0.49.

DeGeeter observed:

“On 5/2/19, NVAX reported 1Q19 financial results and provided important operating updates including: 1) disclosure of plans to meet with FDA and four European regulators in 2Q19 to discuss potential ResVax filing despite Phase III missing primary endpoint; 2) issuance of ~$14M of common stock from ATM program during last two weeks of March, bringing total to $55M for 2019; and 3) optimism relationship with the ResVax can be extended. NVAX hopes to provide a regulatory update in 2Q19, which is earlier than our prior estimate of 3Q19. Our base case assumes FDA seeks an additional study for ResVax prior to approval, but the product is approved in the EU (or another jurisdiction), allowing for distribution of the product in developing markets.”

According to TipRanks.com, DeGeeter is a 4-star analyst with an average return of 12.5% and a 46.9% success rate. DeGeeter covers the Healthcare sector, focusing on stocks such as Catalyst Biosciences Inc, Molecular Templates Inc, and Neon Therapeutics Inc.

Currently, the analyst consensus on Novavax is a Moderate Buy with an average price target of $1.35.

See today’s analyst top recommended stocks >>

Globus Medical (GMED)

Cantor Fitzgerald analyst Craig Bijou reiterated a Buy rating on Globus Medical yesterday and set a price target of $55. The company’s shares closed yesterday at $45.96.

Bijou said:

“: We reiterate our Overweight rating, but lower our 12- month PT to $55 from $60. 1Q revenue of $183MM (+5.7% ex-FX) missed FactSet consensus revenue by $4MM, and EPS missed consensus by $0.05. The miss was disappointing, but we think that there were several positives to take away from the quarter, such as strong US and OUS core spine growth. The robot miss on longer selling cycles raises some concerns, but we think the miss is likely transitory given the number of competitors talking about robots. We still believe that the software upgrade and additional applications (which are coming later this year) should position Excelsius as the leader in spine robotics/enabling technologies.”

According to TipRanks.com, Bijou is a 3-star analyst with an average return of 1.4% and a 46.5% success rate. Bijou covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Ra Medical Systems Inc, and Integra Lifesciences.

Currently, the analyst consensus on Globus Medical is a Moderate Buy with an average price target of $57.33.

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