There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Pulmatrix Inc (NASDAQ: PULM), Heat Biologics (NASDAQ: HTBX) and MannKind (NASDAQ: MNKD) with bullish sentiments.
Pulmatrix Inc (NASDAQ: PULM)
H.C. Wainwright analyst Andrew Fein maintained a Buy rating on Pulmatrix Inc today and set a price target of $3. The company’s shares closed yesterday at $0.56, close to its 52-week low of $0.42.
“Valuation and risks. Our price target of $3.00/share is based on an equally-weighted composite of: (a) $4.52/share, as a 15x multiple of taxed and diluted $3.19 discounted back to FY18 at 30% (in line with the expected PE multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $2.23/ share (discounted cash flow analysis using a 18% discount rate and 0.5% 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 4-star analyst with an average return of 6.1% and a 49.8% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.
The word on The Street in general, suggests a Hold analyst consensus rating for Pulmatrix Inc.
Heat Biologics (NASDAQ: HTBX)
In a report released today, Joseph Pantginis from H.C. Wainwright initiated coverage with a Buy rating on Heat Biologics and a price target of $6. The company’s shares closed yesterday at $2.22, close to its 52-week low of $1.09.
“Valuation and risks to price target achievement. We are initiating coverage with a Buy rating and $6 price target. Our price target is based on our clinical net present value (NPV) model, which allows us to flex multiple assumptions affecting a drug’s potential commercial profile. Our valuation is currently based solely on the HS-110 opportunity in NSCLC, and only on the U.S. market based on what we consider to be modest penetration rates.”
According to TipRanks.com, Pantginis ‘ ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -12.0% and a 34.6% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Applied Genetic Technologies, and Checkpoint Therapeutics Inc.
Heat Biologics has an analyst consensus of Hold.
MannKind (NASDAQ: MNKD)
H.C. Wainwright analyst Oren Livnat reiterated a Buy rating on MannKind today and set a price target of $5. The company’s shares closed yesterday at $2.02, close to its 52-week low of $1.09.
“Valuation and risks. Our $5 target is based on a DCF reflecting only U.S. Afrezza sales, assuming a strong sales ramp in 2019 and beyond, and peak potential over $500M. We apply a 16% WACC discount rate, and 2% terminal growth beyond 2026 (or 6x terminal EBITDA multiple). We think positive terminal growth is justified given the broadly applicable technology platform (e.g. a potential Treprostinil dry powder inhaler), issued Afrezza IP to 2032, and likely extremely high generic hurdles for a generic Afrezza indefinitely.”
According to TipRanks.com, Livnat is ranked 0 out of 5 stars with an average return of -4.6% and a 46.7% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Zynerba Pharmaceuticals, Pacira Pharmaceuticals, and Jazz Pharmaceuticals.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for MannKind with a $2 average price target.
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