Analysts’ Opinions Are Mixed on These Healthcare Stocks: UnitedHealth (NYSE: UNH), Radius Health (NASDAQ: RDUS) and Mallinckrodt (NYSE: MNK)

By Carrie Williams

Analysts have been eager to weigh in on the Healthcare sector with new ratings on UnitedHealth (NYSE: UNH), Radius Health (NASDAQ: RDUS) and Mallinckrodt (NYSE: MNK).

UnitedHealth (NYSE: UNH)

In a report released yesterday, Scott Fidel from Credit Suisse reiterated a Buy rating on UnitedHealth (NYSE: UNH), with a price target of $179. The company’s shares opened today at $157.47, close to its 52-week high of $159.76.

According to TipRanks.com, Fidel is a 5-star analyst with an average return of 8.5% and a 58.3% success rate. Fidel covers the Healthcare sector, focusing on stocks such as WellCare Health Plans, Universal American, and Molina Healthcare.

Currently, the analyst consensus on UnitedHealth is Strong Buy and the average price target is $173, representing a 9.9% upside.

In a report issued on November 23, Leerink Swann also reiterated a Buy rating on the stock with a $185 price target.
Radius Health (NASDAQ: RDUS)

J.P. Morgan analyst Jessica Fye reiterated a Buy rating on Radius Health (NASDAQ: RDUS) today and set a price target of $70. The company’s shares opened today at $53.22.

Fye observed:

“With phase I data for Radius’s SERD RAD1901 coming at SABCS next week, we wanted to share our thoughts heading into the data. Our top incoming question has been “how many responses will we see?” and while management comments have been limited to the term “multiple responses” our base case heading into the meeting is that we see responses in 3 of the 23 patients for whom we expect to see data (n=20 in expansion cohort and n=3 in the FES-PET study). To the extent this data looks encouraging and supports continued development, we believe the Street could begin to ascribe more value to the asset, which in our DCF accounts for $12/share of value (25% prob of $750mm peak sales). Beyond SABCS, we continue to expect approval for lead asset abaloparatide (osteoporosis) on March 30 and a positive CHMP opinion late-2016/early-2017.”

According to TipRanks.com, Fye is ranked 0 out of 5 stars with an average return of -15.9% and a 29.6% success rate. Fye covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Alder Biopharmaceuticals, and Lexicon Pharmaceuticals.

Radius Health has an analyst consensus of Moderate Buy, with a price target consensus of $62.33.

Mallinckrodt (NYSE: MNK)

In a report released yesterday, Chris Schott from J.P. Morgan reiterated a Hold rating on Mallinckrodt (NYSE: MNK), with a price target of $78. The company’s shares opened today at $52.77, close to its 52-week low of $50.90.

Schott said:

“We are updating our MNK model following CY3Q results. Overall, we did not see any surprises from the quarter, with strong branded growth (particularly Acthar) offsetting continued generics weakness. We are modestly lowering our forward estimates to reflect ongoing pressures on the company’s generics business (~30% of sales) and are conservatively removing sales from generic Concerta starting in 2Q17.”

According to TipRanks.com, Schott is a 1-star analyst with an average return of -3.4% and a 37.6% success rate. Schott covers the Healthcare sector, focusing on stocks such as Coherus Biosciences, Endo International, and Impax Laboratories.

Mallinckrodt has an analyst consensus of Strong Buy, with a price target consensus of $78.50.