Analysts’ Opinions Are Mixed on These Healthcare Stocks: Stryker Corporation (NYSE: SYK), Evolus Inc (NASDAQ: EOLS) and Galmed Pharmaceuticals (NASDAQ: GLMD)

By Jason Carr

Analysts have been eager to weigh in on the Healthcare sector with new ratings on Stryker Corporation (NYSE: SYK), Evolus Inc (NASDAQ: EOLS) and Galmed Pharmaceuticals (NASDAQ: GLMD).

Stryker Corporation (NYSE: SYK)

Needham analyst Michael Matson maintained a Hold rating on Stryker Corporation (NYSE: SYK) on June 12. The company’s shares closed yesterday at $166.60.

Matson commented:

“Journal reported that SYK has approached BSX with a takeover offer. It is not clear if BSX has engaged in the discussions but we believe that a potential bid from SYK might elicit a competing bid from JNJ. We estimate that an acquisition of BSX would be ~10% accretive to SYK’s EPS by year three. We think that this would be a transformational acquisition that would give SYK significant breadth to compete with larger more diverse companies including ABT , JNJ, and MDT . However, we’re not big fans of this (potential) deal given potential for significant integration risks, a large increase in SYK’s leverage ratio, and a near-term reduction in SYK’s ROIC and we maintain our Hold rating.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.6% and a 63.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on Stryker Corporation is Moderate Buy and the average price target is $177.13, representing a 6.3% upside.

In a report issued on June 11, Cantor Fitzgerald also maintained a Hold rating on the stock with a $170 price target.

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Evolus Inc (NASDAQ: EOLS)

In a report issued on June 12, Louise Chen from Cantor Fitzgerald maintained a Buy rating on Evolus Inc (NASDAQ: EOLS), with a price target of $35. The company’s shares closed yesterday at $27.96.

Chen wrote:

“. We are raising our 12-month PT for EOLS shares to $35 from $25. The increase in our PT is driven by multiple expansion now that visibility has improved for the peak sales potential of DWP-450 (new CEO from AGN (Neutral), new CFO from RVNC (OW), expansion of commercial team and completion of response to CRL this summer). We use a blend of DCF and EV/ EBITDA analysis to arrive at our new $35 PT.”

According to TipRanks.com, Chen ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -4.6% and a 41.3% success rate. Chen covers the Healthcare sector, focusing on stocks such as Aclaris Therapeutics Inc, Paratek Pharmaceuticals, and Spero Therapeutics Inc.

Currently, the analyst consensus on Evolus Inc is Moderate Buy and the average price target is $34, representing a 21.6% upside.

In a report issued on June 11, Mizuho Securities also reiterated a Buy rating on the stock with a $33 price target.

Galmed Pharmaceuticals (NASDAQ: GLMD)

H.C. Wainwright analyst Ed Arce maintained a Buy rating on Galmed Pharmaceuticals (NASDAQ: GLMD) on June 12 and set a price target of $43. The company’s shares closed yesterday at $17.96.

According to TipRanks.com, Arce is a 5-star analyst with an average return of 33.0% and a 48.2% success rate. Arce covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Conatus Pharmaceuticals, and Aurinia Pharmaceuticals.

Currently, the analyst consensus on Galmed Pharmaceuticals is Moderate Buy and the average price target is $36.50, representing a 103.2% upside.

In a report issued on June 12, Maxim Group also maintained a Buy rating on the stock with a $30 price target.

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