Analysts Are Bullish on These Healthcare Stocks: RDHL, NK

By Ryan Adsit

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on RedHill Biopharma (NASDAQ: RDHL) and NantKwest (NASDAQ: NK) with bullish sentiments.

RedHill Biopharma (NASDAQ: RDHL)

FBR Capital analyst Vernon Bernardino reiterated a Buy rating on RedHill Biopharma (NASDAQ: RDHL) yesterday and set a price target of $36. The company’s shares opened today at $11.43.

Bernardino said:

“On November 14, RedHill Biopharma reported 3Q16 results that showed the company continues to achieve its clinical development objectives while it maintains moderate cash burn (about $8 million) and a healthy balance sheet ($41 million in cash, no debt). We look for significant milestones from the various RHB-104 programs to be catalysts for the stock. An independent Data Safety and Monitoring Board (DSMB) safety assessment of the ongoing RHB-104 Phase III trial in Crohn’s disease (the MAP US study) is expected by year-end and is likely an incremental catalyst. We would look for the top-line final results from the ongoing Phase IIa CEASE-MS study in multiple sclerosis and an efficacy review of MAP US, which has potential for stopping early if overwhelming efficacy is observed, as catalysts expected in the next one to six months that could be positive for the stock. We look for progress in the clinical-stage programs to become translated into stock appreciation.”

According to TipRanks.com, Bernardino is ranked 0 out of 5 stars with an average return of -18.0% and a 25.9% success rate. Bernardino covers the Healthcare sector, focusing on stocks such as ImmunoCellular Therapeutics, Actinium Pharmaceuticals, and Conatus Pharmaceuticals.

RedHill Biopharma has an analyst consensus of Strong Buy.

NantKwest (NASDAQ: NK)

In a report released today, Edward White from FBR Capital reiterated a Buy rating on NantKwest (NASDAQ: NK), with a price target of $29. The company’s shares opened today at $7.49, close to its 52-week low of $5.43.

White commented:

“We are updating our model and estimates for NantKwest after the company filed its 3Q16 10-Q. The company did not host a conference call; however, we were able to catch up with management to discuss the clinical pipeline and operating results earlier today. As a reminder, NantKwest has aNK, haNK, and taNK clinical programs as part of the Cancer MoonShot 2020 initiative that has a focus of accelerating the potential of combination immunotherapies.”

According to TipRanks.com, White is a 1-star analyst with an average return of -1.1% and a 39.0% success rate. White covers the Healthcare sector, focusing on stocks such as Spectrum Pharmaceuticals, RXi Pharmaceuticals Corp, and Synthetic Biologics Inc.

NantKwest has an analyst consensus of Strong Buy.