There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Tesaro (NASDAQ:TSRO) and Cytokinetics Inc (NASDAQ:CYTK) with bullish sentiments.
Tesaro (TSRO)
H.C. Wainwright analyst Edward White reiterated a Buy rating on Tesaro today and set a price target of $69. The company’s shares closed yesterday at $31.88, close to its 52-week low of $25.62.
White said:
“Our $69 price target is based on a sum-of-the-parts (SOTP) analysis of TESARO. We include a value of $36.10/ share, based on 40x our 2021 non-GAAP EPS estimate of $1.06; $27.67/share, based on the present value of the delta of our 2026 Zejula sales estimate of $2.5 billion minus the $783 million in our 2021 estimate, adjusted for a 3x P/S multiple, discounted at 15% and $4.95/share for TESARO’s early-stage immuno-oncology pipeline. Our 40x P/E multiple is within the range of 20-50x of midcap biotech companies. Our P/S multiple of 3x is in line with TESARO’s peers that range between 2-5x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 14.1% and a 44.8% 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 Tesaro with a $56.62 average price target, a 77.6% upside from current levels. In a report issued on October 21, Oppenheimer also assigned a Buy rating to the stock with a $83 price target.
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Cytokinetics Inc (CYTK)
In a report released today, Joseph Pantginis from H.C. Wainwright maintained a Buy rating on Cytokinetics Inc, with a price target of $21. The company’s shares closed yesterday at $6.93, close to its 52-week low of $6.21.
Pantginis wrote:
“Valuation and potential impediments to achieving it. We maintain our Buy rating and $21 price target. We highlight that omecamtiv, partnered globally with Amgen, drives the lion’s share of our current valuation (>80%). Our price target is based on our clinical net present value (NPV) model. We believe this method is appropriate in capturing the value of the clinical stage pipeline by allowing us to flex multiple assumptions, including the chance of success, peak sales estimates, and year of commercial launch.”
According to TipRanks.com, Pantginis has 0 stars on 0-5 star ranking scale with an average return of -15.2% and a 27.4% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Applied Genetic Technologies, Checkpoint Therapeutics Inc, and Strata Skin Sciences Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Cytokinetics Inc with a $14.25 average price target, which is a 105.6% upside from current levels. In a report released today, Piper Jaffray also maintained a Buy rating on the stock with a $12 price target.
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