Analysts Are Bullish on These Healthcare Stocks: Alexion Pharmaceuticals (ALXN), Zimmer Biomet Holdings (ZBH)

By Ryan Adsit

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Alexion Pharmaceuticals (ALXNResearch Report) and Zimmer Biomet Holdings (ZBHResearch Report) with bullish sentiments.

Alexion Pharmaceuticals (ALXN)

In a report released today, Hartaj Singh from Oppenheimer maintained a Buy rating on Alexion Pharmaceuticals, with a price target of $165. The company’s shares closed on Friday at $134.57, close to its 52-week high of $141.86.

Singh said:

“We recently surveyed 25 high volume Soliris prescribers in PNH and aHUS to gauge their satisfaction with Soliris and the potential for PNH and aHUS Ultomiris conversion over the next two years. Some salient takeaways were the following: (1) Soliris penetration among diagnosed PNH and aHUS patients is 50-60%, (2) new to Soliris treatment and chronic Soliris patients in PNH and aHUS are approximately evenly divided, (3) usage of Soliris above the labeled dose occurs on average among 11% to 12% of PNH and aHUS patients, and (4) conversion to Ultomiris could be at or above Alexion’s (ALXN) stated goal of ~70% in two years. This short survey gives us greater conviction in a strong Ultomiris launch. We stay bullish.”

According to TipRanks.com, Singh is a 3-star analyst with an average return of 2.1% and a 42.9% success rate. Singh covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Strongbridge Biopharma Plc, and Catabasis Pharmaceuticals.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Alexion Pharmaceuticals with a $164.18 average price target, a 22.0% upside from current levels. In a report issued on April 16, Nomura also reiterated a Buy rating on the stock with a $165 price target.

See today’s analyst top recommended stocks >>

Zimmer Biomet Holdings (ZBH)

In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on Zimmer Biomet Holdings, with a price target of $135. The company’s shares closed on Friday at $123.86.

Lichtman wrote:

“ZBH’s 1Q19 sales of $1.975B exceeded our/Street’s $1.961B/$1.965B estimates. On a days-adjusted, constant-currency basis, sales grew ~1.4% (1Q/2Q each have 1/2 less billing day). Other were the drivers of outperformance. Total Knees/Hips were in line with our thinking (knees lower, hips higher). Versus our estimate, offsetting higher sales was higher Opex investment (gross margin was better). EPS of $1.87 was $0.02/$0.01 above us/Street, led by lower interest expense. ZBH reiterated 2019 guidance. Growth for the knee/hip companies that have reported is ~2.4%, up slightly sequentially, though comps eased. On the call, management highlighted continued confidence in manufacturing supply, positive early feedback on the Rosa robotic knee launch, and an ongoing shift in focus toward increased manufacturing efficiency.”

According to TipRanks.com, Lichtman has 0 stars on 0-5 star ranking scale with an average return of -4.5% and a 45.2% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tandem Diabetes Care Inc, and Boston Scientific Corp.

Currently, the analyst consensus on Zimmer Biomet Holdings is a Moderate Buy with an average price target of $133.92, an 8.1% upside from current levels. In a report issued on April 24, Needham also upgraded the stock to Buy with a $155 price target.

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