There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Inovio Pharmaceuticals (INO) and Outlook Therapeutics Inc (OTLK) with bullish sentiments.
Inovio Pharmaceuticals (INO)
In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Inovio Pharmaceuticals, with a price target of $13. The company’s shares closed yesterday at $2.71, close to its 52-week low of $2.15.
Selvaraju said:
“As we roll forward the DCF analysis, our 12-month price target is now derived from a market value of the firm at $1.47B, which includes a discounted cash flow based asset value of $1.55B for 15% discount rate, 2% terminal growth rate, 80% probability of success, excluding $78.5M in debt and assuming 110.2M shares outstanding at the end of 2Q20.”
According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -3.9% and a 28.7% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Inovio Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $11.
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Outlook Therapeutics Inc (OTLK)
In a report released today, Douglas Tsao from H.C. Wainwright initiated coverage with a Buy rating on Outlook Therapeutics Inc and a price target of $8. The company’s shares closed yesterday at $1.95, close to its 52-week low of $0.85.
Tsao wrote:
“Our $8 price target for Outlook is based on NPV valuation for ONS-5010. Our DCF model utilizes a terminal decline rate of 10% and a WACC-based discount rate of 13.8%. We utilize a 60% probability of success for ONS-5010 based on amount of clinical data supporting bevacizumab’s efficacy across the three indications being pursued (wet AMD, branch retinal vein occlusion, and diabetic macular edema). We believe that is an appropriate risk-adjustment since ONS-5010 has demonstrated a high degree of similarity with bevacizumab in pharmacokinetic testing. Additionally, there have been several large clinical trials that have characterized the efficacy of bevacizumab in wet AMD and the other retina indications being pursued.”
According to TipRanks.com, Tsao is a 2-star analyst with an average return of 0.7% and a 49.2% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Protagonist Therapeutics, and Minerva Neurosciences.
Outlook Therapeutics Inc has an analyst consensus of Strong Buy, with a price target consensus of $8.
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