Analysts’ Top Healthcare Picks: Viking Therapeutics (VKTX), Spectrum Pharmaceuticals (SPPI)


There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Viking Therapeutics (VKTX) and Spectrum Pharmaceuticals (SPPI) with bullish sentiments.

Viking Therapeutics (VKTX)

In a report released yesterday, Mayank Mamtani from B.Riley FBR reiterated a Buy rating on Viking Therapeutics, with a price target of $16. The company’s shares opened today at $8.35.

Mamtani wrote:

“On Wednesday mid-day, 1/16/2019, Citron issued a short thesis report on Ligand Pharmaceuticals, the biotech company from which VKTX had originally sourced their pipeline of molecules to found the company in 2013. This resulted in share weakness and VKTX closed ~6% lower for the day; LGND was down ~16%. We reviewed the details specific to VKTX in the Citron report and highlight that interestingly LGND values VKTX at 10x higher valuation than current trading levels. B. Riley FBR doesn’t cover LGND and can’t speak to methodology used in valuing future milestones from VKTX, but this is supportive of our thesis of VKTX being an undervalued NASH story; hence we deem the sell-off to be overdone.”

According to TipRanks.com, Mamtani is a 3-star analyst with an average return of 14.0% and a 83.3% success rate. Mamtani covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Allena Pharmaceuticals Inc, and Galmed Pharmaceuticals.

Currently, the analyst consensus on Viking Therapeutics is a Strong Buy with an average price target of $24.38.

See today’s analyst top recommended stocks >>

Spectrum Pharmaceuticals (SPPI)

B.Riley FBR analyst David Buck maintained a Buy rating on Spectrum Pharmaceuticals yesterday and set a price target of $21. The company’s shares opened today at $10.55.

Buck commented:

“Spectrum Pharmaceuticals (SPPI) shares remain Buy rated and our target remains $21 per share. Spectrum announced the sale of its commercial business through a definitive agreement with Acrotech Biopharma L.L.C., which is providing $160M as an up-front payment. Additionally there are milestones totaling up to $140M related to labeling and sales levels for divestiture drugs Marquibo (liposomal vincristine/NHL etc.) and Khapzory (levoleucovorin). Spectrum announced an approximate 40% reduction in its workforce associated with this transaction while keeping a “core group of commercial talent” to prepare for launches for Rolontis (pegylated, novel g-CSF) for neutropenia and poziotinib, or Pozi.”

According to TipRanks.com, Buck is a 1-star analyst with an average return of -3.1% and a 39.6% success rate. Buck covers the Healthcare sector, focusing on stocks such as Supernus Pharmaceuticals, Amag Pharmaceuticals, and Correvio Pharma Corp.

Currently, the analyst consensus on Spectrum Pharmaceuticals is a Moderate Buy with an average price target of $32, a 203.3% upside from current levels. In a report issued on January 2, H.C. Wainwright also maintained a Buy rating on the stock with a $40 price target.

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