Analysts Have Conflicting Sentiments on These Healthcare Companies: Juno Therapeutics (NASDAQ: JUNO) and USANA Health (NYSE: USNA)

By Ryan Adsit

Analysts have been eager to weigh in on the Healthcare sector with new ratings on Juno Therapeutics (NASDAQ: JUNO) and USANA Health (NYSE: USNA).

Juno Therapeutics (NASDAQ: JUNO)

Leerink Swann analyst Michael Schmidt reiterated a Buy rating on Juno Therapeutics (NASDAQ: JUNO) on November 23. The company’s shares closed last Friday at $23.01, close to its 52-week low of $19.41.

Schmidt commented:

“We’re using a 12% discount rate which we think is appropriate as we use probability-weighted sales estimates for the products and believe the CELG (MP) collaboration, equity investment and ex-US opt-in to CD19 programs lower the risk profile relative to Juno’s peers. We assume the CAR-T market will be split among up to 5 competitors long-term, depending on the indication, including JUNO, KITE, NVS, CLLS, BLUE and others, pending further validation of respective products. Based on the complexity of the technology and manufacturing and the lack of regulatory path for generic versions of CAR-T products as a result of patient-specific manufacturing, we believe that CAR-T product sales are sustainable even after the loss of patent exclusivity.”

According to TipRanks.com, Schmidt is a top 100 analyst with an average return of 27.7% and a 64.7% 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 Juno Therapeutics is Moderate Buy and the average price target is $36, representing a 56.5% upside.

In a report issued on November 10, FBR Capital also reiterated a Buy rating on the stock with a $61 price target.
USANA Health (NYSE: USNA)

In a report issued on November 25, Eric Gottlieb from D.A. Davidson reiterated a Hold rating on USANA Health (NYSE: USNA), with a price target of $73. The company’s shares closed last Friday at $63.20.

Gottlieb observed:

“Wentz had been CEO since 2008 and co-CEO since August 2015 and held a number of strategic positions since the company’s inception in 1992. The decision was entirely personal and Wentz will remain involved in the industry as Chairman of the Direct Selling Education Foundation. Wentz will hold onto his 3.2% ownership in the company, and we could foresee him remaining involved in USANA in some fashion though no plans were announced.”

According to TipRanks.com, Gottlieb is a 4-star analyst with an average return of 5.8% and a 62.2% success rate. Gottlieb covers the Consumer Goods sector, focusing on stocks such as Lancaster Colony Corp., Amplify Snack Brands, and Omega Protein Corp.

USANA Health has an analyst consensus of Hold, with a price target consensus of $73.