Analysts Conflicted on These Healthcare Names: Avid Bioservices Inc (NASDAQ: CDMO), Chiasma (NASDAQ: CHMA) and Evoke Pharma (NASDAQ: EVOK)

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Avid Bioservices Inc (CDMOResearch Report), Chiasma (CHMAResearch Report) and Evoke Pharma (EVOKResearch Report).

Avid Bioservices Inc (CDMO)

In a report released today, Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Avid Bioservices Inc, with a price target of $11. The company’s shares closed yesterday at $4, close to its 52-week low of $3.37.

Pantginis observed:

“Valuation and impediments to achieving price target. We reiterate our Buy rating with a price target of $11. Our valuation is based on a discounted EBITDA model, which we believe takes into account both the established and anticipated revenue growth of Avid, which is the cornerstone of the company’s business. We assign a 23x multiple on F2023 EBIDTA discounted back at Avid’s WACC of 13%. We believe that Avid deserves a multiple premium compared to recent CDMO deals in North America, which are based on M&A transactions of mature business.”

According to TipRanks.com, Pantginis is ranked 0 out of 5 stars with an average return of -3.3% and a 33.9% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Applied Genetic Technologies, Iovance Biotherapeutics Inc, and Checkpoint Therapeutics Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Avid Bioservices Inc with a $8 average price target.

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Chiasma (CHMA)

H.C. Wainwright analyst Douglas Tsao maintained a Buy rating on Chiasma today and set a price target of $11. The company’s shares closed yesterday at $7.45, close to its 52-week high of $8.29.

Tsao commented:

“Our $11 price target is based on our DCF valuation. Our DCF model utilizes a terminal rate of decline of 10%, and a WACC- based discount rate of 10.0% (Beta of 1.0, equity risk premium of 5.6%). We assume a 21% tax rate. We apply an 80% risk adjustment to our valuation to account for probability of success for the U.S. and European trials.”

According to TipRanks.com, Tsao is a 3-star analyst with an average return of 1.4% and a 51.6% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Minerva Neurosciences, and Revance Therapeutics.

Currently, the analyst consensus on Chiasma is a Moderate Buy with an average price target of $14.50.

Evoke Pharma (EVOK)

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Hold rating on Evoke Pharma. The company’s shares closed yesterday at $0.57, close to its 52-week low of $0.50.

Selvaraju wrote:

“Valuation methodology and risks. We remain in a holding pattern until further clarity is obtained regarding the issues raised in the CRL and the degree to which they can be addressed near-term, as well as the timeline to potential resubmission of the Gimoti NDA and possible regulatory approval of the drug.”

According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 1.7% and a 32.7% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Evoke Pharma.

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