There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on MEI Pharma (MEIP), TRACON Pharmaceuticals, Inc. (TCON) and CareDx (CDNA) with bullish sentiments.
MEI Pharma (MEIP)
H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on MEI Pharma today and set a price target of $10. The company’s shares closed last Monday at $1.72, close to its 52-week low of $1.44.
Fein noted:
“Valuation and risks to achievement of target price. Our price target of $10/share is based on an equally-weighted composite of: (a) $9.6/share, as a 25x multiple of taxed and diluted $4.1 discounted back to FY19 at 30% (in line with the expected P/E multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $10.6/ share (discounted cash flow analysis using a 20% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”
According to TipRanks.com, Fein is a 2-star analyst with an average return of 0.2% and a 38.6% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for MEI Pharma with a $10 average price target.
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TRACON Pharmaceuticals, Inc. (TCON)
TRACON Pharmaceuticals, Inc. received a Buy rating and a $2 price target from H.C. Wainwright analyst Edward White today. The company’s shares closed last Monday at $0.55, close to its 52-week low of $0.40.
White wrote:
“We are initiating coverage with a Buy rating and $2 price target. TRACON is a development stage biotech company that is currently trading with a negative enterprise value and a binary event within nine months that could have a major impact on the stock price. While the company has had two disappointing study results since December 2018 (both for TRC105), we do believe the current product pipeline has value and that the stock should be trading above its current cash level. We think at the current stock price that the shares represent a good buying opportunity for investors with a speculative strategy. Opportunities in two large markets. TRACON has licensed not rated) for development in wet age-related macular degeneration (AMD). DE-122 is the ophthalmic formulation of the company’s endoglin antibody, carotuximab.”
According to TipRanks.com, White is a 5-star analyst with an average return of 15.2% and a 50.0% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Aeglea Biotherapeutics Inc, and Spectrum Pharmaceuticals.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TRACON Pharmaceuticals, Inc. with a $2 average price target.
CareDx (CDNA)
H.C. Wainwright analyst Yi Chen reiterated a Buy rating on CareDx today and set a price target of $43. The company’s shares closed last Monday at $23.86.
According to TipRanks.com, Chen ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -21.3% and a 26.0% success rate. Chen covers the Healthcare sector, focusing on stocks such as EyePoint Pharmaceuticals Inc, Stealth Biotherapeutics Corp, and Aerpio Pharmaceuticals Inc.
Currently, the analyst consensus on CareDx is a Strong Buy with an average price target of $50.50, which is an 117.7% upside from current levels. In a report issued on August 22, Piper Jaffray also maintained a Buy rating on the stock with a $63 price target.
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