Analysts Offer Insights on Healthcare Companies: Omeros Corp. (NASDAQ: OMER) and Kite Pharma (NASDAQ: KITE)

By Austin Angelo

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Omeros Corp. (NASDAQ: OMER) and Kite Pharma (NASDAQ: KITE) with bullish sentiments.

Omeros Corp. (NASDAQ: OMER)

In a report released yesterday, Thomas Yip from FBR Capital reiterated a Buy rating on Omeros Corp. (NASDAQ: OMER), with a price target of $38. The company’s shares closed yesterday at $11.88.

Yip commented:

“On November 9, Omeros reported its 3Q16 results and discussed progress of its clinical-stage assets in a company conference call. Omidria U.S. sales increased quarterly by $1.3M (or 13%) in 3Q16 to $11.3M. We project Omidria to recover from slower sales in the summer months with moderate sales growth in 4Q16 and sustain a low double-digit percentage growth in 2017 as U.S. reimbursement begins to become more uniform across different channels. On the clinical front, we continue to expect the designs of a single Phase III trial of OMS721 for the treatment of atypical hemolytic uremic syndrome (aHUS) to become finalized around year-end 2016, and think new trials of OMS721 in several other indications could initiate in 2017. We think Omeros remains undervalued based on its leading position in the intraocular lens (IOL) replacement market and the potential upside from several rare disease indications of OMS721.”

According to TipRanks.com, Yip is ranked 0 out of 5 stars with an average return of -22.9% and a 29.3% success rate. Yip covers the Healthcare sector, focusing on stocks such as Threshold Pharmaceuticals, Asterias Biotherapeutics, and Mateon Therapeutics Inc.

Currently, the analyst consensus on Omeros Corp. is Strong Buy and the average price target is $50.67, representing a 326.5% upside.

In a report issued on October 27, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $21 price target.
Kite Pharma (NASDAQ: KITE)

In a report issued on November 9, Edward White from FBR Capital reiterated a Buy rating on Kite Pharma (NASDAQ: KITE), with a price target of $78. The company’s shares closed yesterday at $50.90.

White wrote:

“Kite Pharma reported above-consensus 3Q16 results on November 9. More important than earnings, in our opinion, the company announced its intent to start a rolling BLA submission for KTE-C19 for the broad indication of aggressive non- Hodgkin’s lymphoma by YE16 with targeted completion in 1Q17. We expect the compound to receive regulatory approval in 2017. Kite also discussed the rest of its pipeline and its commercialization and manufacturing capabilities. These comments were similar to what was heard at the company’s investor day on October 18 (see our note here). Kite has been executing on its catalysts, in our opinion, and we believe it will continue on this path.”

According to TipRanks.com, White is ranked 0 out of 5 stars with an average return of -5.3% and a 28.2% success rate. White covers the Healthcare sector, focusing on stocks such as Spectrum Pharmaceuticals, RXi Pharmaceuticals Corp, and Synthetic Biologics Inc.

Currently, the analyst consensus on Kite Pharma is Strong Buy and the average price target is $72, representing a 41.5% upside.

In a report issued on November 1, Canaccord Genuity also reiterated a Buy rating on the stock with a $75 price target.