Analysts’ Opinions Are Mixed on These Healthcare Stocks: Mylan Inc. (NASDAQ: MYL), Stryker (NYSE: SYK) and Magellan Health (NASDAQ: MGLN)

By Austin Angelo

Analysts have been eager to weigh in on the Healthcare sector with new ratings on Mylan Inc. (NASDAQ: MYL), Stryker (NYSE: SYK) and Magellan Health (NASDAQ: MGLN).

Mylan Inc. (NASDAQ: MYL)

Barclays analyst Douglas Tsao reiterated a Hold rating on Mylan Inc. (NASDAQ: MYL) today and set a price target of $44. The company’s shares opened today at $39.45.

Tsao wrote:

“We note MYL’s own pro-forma presentation from its 10-Q assuming full-year contributions from EPD and MEDA showed a 10% Y/Y decline in 3Q. MYL said pricing remained stable with mid-single digit declines, a message we heard from Sandoz, DRL and Lupin, but ENDP’s comments yesterday in terms of 10-12% price erosion and greater discounting by “established players” will likely cause some investors to take a wait-and-see approach to generics.”

According to TipRanks.com, Tsao is a 4-star analyst with an average return of 8.2% and a 53.4% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Protagonist Therapeutics, Pacira Pharmaceuticals, and Amag Pharmaceuticals.

Currently, the analyst consensus on Mylan Inc. is Moderate Buy and the average price target is $51.25, representing a 29.9% upside.

In a report released today, Wells Fargo also reiterated a Hold rating on the stock.
Stryker (NYSE: SYK)

In a report released today, Matthew Taylor from Barclays reiterated a Sell rating on Stryker (NYSE: SYK), with a price target of $120. The company’s shares opened today at $117.28.

According to TipRanks.com, Taylor is a 4-star analyst with an average return of 3.9% and a 54.4% success rate. Taylor covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Zimmer Biomet Holdings, and Baxter International.

Stryker has an analyst consensus of Hold, with a price target consensus of $122.67.

Magellan Health (NASDAQ: MGLN)

Barclays analyst Joshua Raskin reiterated a Sell rating on Magellan Health (NASDAQ: MGLN) today and set a price target of $61. The company’s shares opened today at $62.55.

Raskin noted:

“We were somewhat surprised by the strong move in the stock yesterday (up 1,668bps relative to the market), especially in light of the significant weakness in the Medicaid managed care names. Remember, Magellan generates about 50% of their revenues from Medicaid either directly or through health plan customers. With the third quarter’s strong results and guidance boost, the focus moves to 2017 guidance and the intent behind a statement of “solid segment growth.” Magellan usually provides annual initial guidance in December, but typically offers commentary around its outlook for the following year with the third quarter release which can be volatile. Looking back to commentary since 2010, “solid growth” has led to guidance that averaged growth in segment profit of 6.2%. In other years such as 2011 and 2014, Magellan projected “modestly lower” segment profit, which resulted in -12.3% segment profit decline. Remember, this growth is based on guidance for the next year given in November/December, compared to guidance in the third quarter for the current year.”

According to TipRanks.com, Raskin is a 4-star analyst with an average return of 4.5% and a 59.0% success rate. Raskin covers the Healthcare sector, focusing on stocks such as WellCare Health Plans, Surgery Partners Inc, and Envision Healthcare.

Magellan Health has an analyst consensus of Hold, with a price target consensus of $61.