There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Spectrum Pharmaceuticals (NASDAQ:SPPI), Rexahn Pharma (NYSE MKT:RNN) and OpGen Inc (NASDAQ:OPGN) with bullish sentiments.
Spectrum Pharmaceuticals (SPPI)
In a report released today, Edward White from H.C. Wainwright reiterated a Buy rating on Spectrum Pharmaceuticals, with a price target of $40. The company’s shares closed yesterday at $16.52.
White noted:
“Our $40 price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.90 per share, the pipeline at $12.24 per share, and YE18 estimated fully diluted net cash of $1.65 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.13, discounted at 15%. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 3x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 23.7% and a 51.2% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.
Currently, the analyst consensus on Spectrum Pharmaceuticals is a Strong Buy with an average price target of $34.75.
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Rexahn Pharma (RNN)
H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Rexahn Pharma today and set a price target of $19.50. The company’s shares closed yesterday at $1.78.
Pantginis commented:
“Valuation and risks to price target achievement. We reiterate our Buy rating and $19.50 price target. Our target is based on our clinical net present value (NPV) model, which is currently driven by the company’s two lead assets, RX-3117, and RX-5902 (Supinoxin). This model allows us to flex multiple assumptions affecting a drug’s potential commercial profile. Factors which could impede reaching our price target include failed or inconclusive clinical trials or inability of the company to secure adequate funding to progress its drugs through the development pathway.”
According to TipRanks.com, Pantginis is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -5.5% and a 37.4% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Applied Genetic Technologies, and Iovance Biotherapeutics Inc.
Currently, the analyst consensus on Rexahn Pharma is a Moderate Buy with an average price target of $13.50.
OpGen Inc (OPGN)
H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on OpGen Inc today and set a price target of $8. The company’s shares closed yesterday at $2.20, close to its 52-week low of $1.62.
Selvaraju noted:
“Our price target is derived from a market value of the firm at $75M excluding debt. This includes a discounted cash flow analysis based enterprise value of $76M for the QuickFISH and AMR products, with a 15% discount rate and 2% terminal growth rate. Risks include, but are not limited to: (1) failure of AMR products to receive regulatory approval; (2) failure of QuickFISH and AMR products to achieve commercial success due to lower-than-expected market size, lower- than-anticipated penetration rates, and/or higher-than-expected levels of competition; and (3) dilution risk.”
According to TipRanks.com, Selvaraju is a 4-star analyst with an average return of 5.7% and a 44.5% 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 OpGen Inc is a Moderate Buy with an average price target of $8.
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