Analysts’ Top Healthcare Picks: CHRS, ACRS

By Ryan Adsit

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Coherus Biosciences (NASDAQ: CHRS) and Aclaris Therapeutics Inc (NASDAQ: ACRS) with bullish sentiments.

Coherus Biosciences (NASDAQ: CHRS)

In a report released yesterday, Alethia Young from Credit Suisse maintained a Buy rating on Coherus Biosciences (NASDAQ: CHRS), with a price target of $38. The company’s shares closed yesterday at $22.50.

According to TipRanks.com, Young is a 2-star analyst with an average return of 0.0% and a 44.1% success rate. Young covers the Healthcare sector, focusing on stocks such as Achillion Pharmaceuticals, Ionis Pharmaceuticals Inc, and Alexion Pharmaceuticals.

Coherus Biosciences has an analyst consensus of Strong Buy.

Aclaris Therapeutics Inc (NASDAQ: ACRS)

Guggenheim analyst Louise Chen reiterated a Buy rating on Aclaris Therapeutics Inc (NASDAQ: ACRS) yesterday and set a price target of $40. The company’s shares closed yesterday at $30.65, close to its 52-week high of $33.25.

Chen observed:

“We are raising our PT from $35 to $40 post 4Q16. We arrive at our PT by using a DCF analysis. Post the quarter, we continue to believe that upwards earnings revisions to levels not yet reflected in sell-side expectations should drive ACRS shares higher. We believe upwards consensus earnings revisions could come from: 1) Faster than expected uptake and higher than expected peak sales of A-101 for SK; 2) Commercialization of A-101 for common warts; and, 3) Free call options on ATI-50001, ATI-50002, and other early stage pipeline opportunities. Positives from the 4Q16 release that support our thesis: 1) In November of ’16, ACRS reported that two pivotal Phase 3 trials of its lead product candidate A-101 40% Topical Solution met all primary and secondary endpoints of each trial, achieving clinically and statistically significant clearance of seborrheic keratosis (SK) lesions. In February 2017, ACRS submitted a New Drug Application NDA for A-101 40% Topical Solution for the treatment of SK to the FDA. 2) During ’16 ACRS also reported positive data from a Phase 2 trial of A-101 45% Topical Solution for the treatment of common warts. 3) ACRS recently completed a Phase 1 clinical trial of ATI-50001, its investigational JAK inhibitor, for the treatment of alopecia totalis and alopecia universalis. And, 4) ACRS had cash and cash equivalents of $174.1MM as of 12/31/16.”

According to TipRanks.com, Chen is ranked 0 out of 5 stars with an average return of -14.7% and a 32.8% success rate. Chen covers the Healthcare sector, focusing on stocks such as Sucampo Pharmaceuticals, Paratek Pharmaceuticals, and Aralez Pharmaceuticals.

Aclaris Therapeutics Inc has an analyst consensus of Moderate Buy.

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