There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Eton Pharmaceuticals Inc (ETON) and Alimera (ALIM) with bullish sentiments.
Eton Pharmaceuticals Inc (ETON)
H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Eton Pharmaceuticals Inc today and set a price target of $18. The company’s shares closed yesterday at $7.40.
Selvaraju commented:
“We have valued Eton based on a discounted cash flow (DCF) assessment, driven by our projection of future sales and royalty-based revenue from three candidates in the company’s pipeline, namely and ET-202. Our valuation approach utilizes a 12% discount rate and 2% terminal growth rate, along with a 28% effective tax rate applied to future cash flows. We assign a 90% probability of regulatory approval to EM-100, an 85% probability of approval to ET-202, which have already been filed with the 80% probability of approval to ET-103 and ET-105.”
According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 3.1% and a 33.0% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Eton Pharmaceuticals Inc with a $15 average price target.
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Alimera (ALIM)
In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on Alimera, with a price target of $3. The company’s shares closed yesterday at $0.92.
Chen observed:
“Our price target is derived from an estimated market value of the firm at $202M. This includes a discounted cash flow based enterprise value of the firm at $272M, excluding $40M debt and $30M preferred stock. The DCF analysis utilizes a 15% discount rate and a 2% terminal growth rate.”
According to TipRanks.com, Chen is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -24.5% and a 35.0% success rate. Chen covers the Healthcare sector, focusing on stocks such as Aerpio Pharmaceuticals Inc, HTG Molecular Diagnostics, and Aslan Pharmaceuticals Ltd.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Alimera with a $3.01 average price target.
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