There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Seattle Genetics (NASDAQ:SGEN) and Aduro BioTech (NASDAQ:ADRO) with bullish sentiments.
Seattle Genetics (SGEN)
In a report released today, Andrew Fein from H.C. Wainwright maintained a Buy rating on Seattle Genetics, with a price target of $98. The company’s shares closed yesterday at $81.16, close to its 52-week high of $81.66.
Fein observed:
“We reach a price target of $98 after adjusting new corporate tax rate, cash, and other program updates. The price target is based on a sum-of-parts NPV-DCF ($59.2 HL + $3.53 relapsed sALCL+ $11.9 frontline PTCL + $20.3 platform + $2.8 cash). Key risks to achievement of our target price include trial failures, safety issues, regulatory delays, competition, and dilutive financing. Seattle Genetics Inc. October 2, 2018 H.C. WAINWRIGHT & CO. EQUITY RESEARCH 2Seattle Genetics, Inc.”
According to TipRanks.com, Fein is a 4-star analyst with an average return of 10.5% and a 47.1% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Seattle Genetics with a $89 average price target, implying a 9.7% upside from current levels. In a report issued on September 24, Leerink Partners also initiated coverage with a Buy rating on the stock with a $101 price target.
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Aduro BioTech (ADRO)
H.C. Wainwright analyst Joseph Pantginis maintained a Buy rating on Aduro BioTech today and set a price target of $8.30. The company’s shares closed yesterday at $7.18.
Pantginis wrote:
“Valuation and risks to price target achievement. We maintain our Buy rating, and are reducing our price target to $8.30 from $9.50. The drivers for our current valuation change include: (1) adjustment to fully diluted share count; (2) adjustment to base year; and (3) removal of from our projections, both of which were valued at early Phase 1 chance of success projections of 10-15%. This valuation reflects the revaluation of the company following the discontinuation of CRS-207 (lead value driver in 2017).”
According to TipRanks.com, Pantginis has 0 stars on 0-5 star ranking scale with an average return of -6.0% and a 37.7% 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 Aduro BioTech is a Strong Buy with an average price target of $17.50.
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