There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Bio-Path Holdings (BPTH), Synlogic Inc (SYBX) and Avrobio Inc (AVRO) with bullish sentiments.
Bio-Path Holdings (BPTH)
H.C. Wainwright analyst Yi Chen initiated coverage with a Buy rating on Bio-Path Holdings today and set a price target of $28. The company’s shares closed yesterday at $12.90, close to its 52-week low of $1.61.
Chen said:
“Our price target is derived from a market value of the firm at $81M, which includes a discounted cash flow-based asset value for prexigebersen (BP1001), using a 15% discount rate and 1% terminal growth rate, and assuming 2.9M shares outstanding at the end of 2Q20. Probability of success ascribed is 40%, based solely on future U.S. sales of prexigebersen in treatment of AML and MDS.”
According to TipRanks.com, Chen is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -20.2% and a 35.3% success rate. Chen covers the Healthcare sector, focusing on stocks such as EyePoint Pharmaceuticals Inc, Stealth Biotherapeutics Corp, and Aerpio Pharmaceuticals Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Bio-Path Holdings with a $28 average price target.
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Synlogic Inc (SYBX)
In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Synlogic Inc, with a price target of $22. The company’s shares closed yesterday at $8.26.
Selvaraju noted:
“We calculate an enterprise value of $820M, comprised of $620M for SYNB1020 in UCD and hyperammonemia and I/O portfolio. This yields a price objective of $22.00 per share, with 37.2M fully-diluted shares outstanding as of end-1Q20 (including exercise of all options and pre-funded warrants). Risks include, but are not limited to: (1) slower-than-anticipated lead optimization of viable clinical-stage candidates; (2) negative results from early trials; (3) slower-than-anticipated clinical testing; and (4) inability to obtain regulatory approvals.”
According to TipRanks.com, Selvaraju has 0 stars on 0-5 star ranking scale with an average return of -2.7% and a 29.6% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Currently, the analyst consensus on Synlogic Inc is a Strong Buy with an average price target of $19.20, representing a 132.4% upside. In a report released yesterday, Chardan Capital also reiterated a Buy rating on the stock with a $25 price target.
Avrobio Inc (AVRO)
H.C. Wainwright analyst Debjit Chattopadhyay maintained a Buy rating on Avrobio Inc today and set a price target of $40. The company’s shares closed yesterday at $16.42, close to its 52-week low of $11.85.
Chattopadhyay wrote:
“Our $40 price target is derived from a risk-adjusted, sum-of-the-parts analysis that drives our DCF analysis, which is based on: beta of 1.25, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 8.4%, and tax rate of 15% beginning in FY 2028. Our price target reflects uncertainties stemming from the clinical update from the Fabry program (AVR-RD-01), resulting in: (1) a push out of our launch estimate into 2H-2022, vs. prior 2H-2021; and (2) lower Fabry POS of 25% from 30%.”
According to TipRanks.com, Chattopadhyay is a 3-star analyst with an average return of 1.1% and a 45.5% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Mersana Therapeutics Inc.
Avrobio Inc has an analyst consensus of Strong Buy, with a price target consensus of $34, representing a 107.1% upside. In a report released yesterday, Cowen & Co. also maintained a Buy rating on the stock.
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