Analysts Are Bullish on These Healthcare Stocks: EIGR, INCY

By Austin Angelo

There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Eiger Biopharmaceuticals (NASDAQ: EIGR), Incyte Corp. (NASDAQ: INCY) and Acadia Healthcare (NASDAQ: ACHC) with bullish sentiments.

Eiger Biopharmaceuticals (NASDAQ: EIGR)

Oppenheimer analyst Jay Olson reiterated a Buy rating on Eiger Biopharmaceuticals (NASDAQ: EIGR) yesterday and set a price target of $34. The company’s shares opened today at $12.55, close to its 52-week low of $10.71.

Olson commented:

“We attended AASLD, and despite the almost overwhelming attention to NASH, we detected a notable level of enthusiasm around new treatments in development for hepatitis D virus (HDV). Most importantly, several abstracts featuring interim data from EIGR’s LOWR HDV program were presented. This note summarizes our key takeaways from these presentations.”

According to TipRanks.com, Olson is a 4-star analyst with an average return of 16.5% and a 63.6% success rate. Olson covers the Healthcare sector, focusing on stocks such as Intercept Pharma, Portola Pharma, and TherapeuticsMD.

Currently, the analyst consensus on Eiger Biopharmaceuticals is Strong Buy and the average price target is $31, representing a 147.0% upside.

In a report issued on November 11, Jefferies also reiterated a Buy rating on the stock with a $28 price target.
Incyte Corp. (NASDAQ: INCY)

Leerink Swann analyst Michael Schmidt reiterated a Buy rating on Incyte Corp. (NASDAQ: INCY) yesterday and set a price target of $115. The company’s shares opened today at $106.90.

According to TipRanks.com, Schmidt is a top 25 analyst with an average return of 25.2% and a 64.2% success rate. Schmidt covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Adaptimmune Therapeutics, and Karyopharm Therapeutics.

Currently, the analyst consensus on Incyte Corp. is Strong Buy and the average price target is $116.67, representing a 9.1% upside.

In a report released today, RBC Capital also maintained a Buy rating on the stock.
Acadia Healthcare (NASDAQ: ACHC)

Leerink Swann analyst Ana Gupte reiterated a Buy rating on Acadia Healthcare (NASDAQ: ACHC) yesterday and set a price target of $60. The company’s shares opened today at $37.82, close to its 52-week low of $34.40.

Gupte commented:

“We are updating our ACHC (OP) model for 3Q reporting, guidance, Fx and the Priory close. The quarter miss was driven by Fx, US & UK slowdown and timing of the Priory divestitures and deal close. Nonetheless, management is optimistic and point to a 4Q recovery in US volumes and do not view clinical staffing shortages as a headwind. We are updating our model for 4Q and 2017 to reflect the headwinds and the call commentary. Specifically, we are lowering 4Q EPS to $0.56 as compared to guidance of $0.55-0.56 vs. consensus of $0.57. We are also lowering 2017 EBITDA adj. to $660 MM as compared to consensus of $677 MM, where there has been a concern on estimates being too high. We see 2017 as a recovery year for ACHC fundamentally as the Priory synergies are realized, proceeds redeployed in the US and the slide in the GBP stabilizes. Our forecast assumes USD per GBP FX rate of $1.22 in line with management guidance. From a policy perspective, ACHC is insulated to a large extent from the efforts to repeal and replace the ACA, given the IMD (Institutions for Mental Diseases) exclusion, that reimburses free standing behavioral facilities for adult Managed Medicaid. While ACHC’s substance abuse business through the purchase of CRC Health has exposure to HIX marketplaces and Medicaid expansion, the bipartisan support for mental health reform is poised to replace any loss of coverage.”

According to TipRanks.com, Gupte is a 4-star analyst with an average return of 4.8% and a 64.4% success rate. Gupte covers the Healthcare sector, focusing on stocks such as WellCare Health Plans, Universal American, and Molina Healthcare.

Currently, the analyst consensus on Acadia Healthcare is Strong Buy and the average price target is $58.67, representing a 55.1% upside.

In a report issued on November 2, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $60 price target.