There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Chiasma (CHMA) and Leap Therapeutics Inc (LPTX) with bullish sentiments.
Chiasma (CHMA)
In a report released today, Douglas Tsao from H.C. Wainwright reiterated a Buy rating on Chiasma, with a price target of $11. The company’s shares closed on Friday at $5.07.
Tsao wrote:
“We’ve heard questions from some investors whether the 58% response rate reported was “good enough” to drive significant commercial adoption. The company’s rebuttal highlighted the treatment burdens of injectable somatostatin analogs (SSAs), including injection site reactions and inadequate symptom control. Chiasma hopes that symptom data from the ACM-01 trial is included in Mycapssa’s label, although management noted that is a decision for the FDA. Chiasma noted that 90% of patients treated with Mycapssa in the OPTIMAL trial chose to continue in the open label extension, which, in our view, reflects the much improved patient experience with Mycapssa compared to SSAs. Chiasma believes it can reach 90% of the patients treated with SSAs by targeting roughly 1,000 endocrinology accounts with a small specialty sales force.”
According to TipRanks.com, Tsao is a 1-star analyst with an average return of -0.5% and a 46.8% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Outlook Therapeutics Inc, and Protagonist Therapeutics.
Currently, the analyst consensus on Chiasma is a Strong Buy with an average price target of $13, a 156.4% upside from current levels. In a report issued on July 31, Piper Jaffray also initiated coverage with a Buy rating on the stock with a $11 price target.
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Leap Therapeutics Inc (LPTX)
H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Leap Therapeutics Inc today and set a price target of $7.50. The company’s shares closed on Friday at $1.55, close to its 52-week low of $1.35.
Ramakanth observed:
“We maintain our Buy rating of LPTX, and lower our 12-month price target to $7.50 per diluted share, down from $10.00. We derive our price target based on a risk-adjusted NPV (rNPV) analysis of projected DKN-01 and TRX518 revenues through 2030, assuming a 12% discount rate and a 2% terminal growth rate. We derive an rNPV of $563M for the products and add in pro forma cash and cash equivalents of $16.7M to arrive at a 12-month price target of $7.59 per diluted share, which we round to $7.50.”
According to TipRanks.com, Ramakanth has currently no stars on a ranking scale of 0-5 stars, with an average return of -11.9% and a 28.2% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as IntelGenx Technologies, Gritstone Oncology Inc, and Trillium Therapeutics.
Currently, the analyst consensus on Leap Therapeutics Inc is a Moderate Buy with an average price target of $7.50.
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