Analysts Are Bullish on These Healthcare Stocks: Sorrento Therapeutics (SRNE), Tocagen Inc (TOCA)

By Jason Carr

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Sorrento Therapeutics (NASDAQ:SRNE) and Tocagen Inc (NASDAQ:TOCA) with bullish sentiments.

Sorrento Therapeutics (SRNE)

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Sorrento Therapeutics, with a price target of $40. The company’s shares closed yesterday at $4.55.

Selvaraju said:

“We ascribe a value of $6.4B based on a sum- of-the-parts approach, or a price per share of $40.00, assuming 159M projected shares outstanding as of end-2Q 2019. The projected share count assumes conversion of all outstanding convertible notes and exercise of all outstanding options and warrants.”

According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 2.4% and a 43.3% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Synergy Pharmaceuticals Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sorrento Therapeutics with a $21.67 average price target, which is a 376.3% upside from current levels. In a report issued on September 10, B.Riley FBR also assigned a Buy rating to the stock with a $15 price target.

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Tocagen Inc (TOCA)

H.C. Wainwright analyst Swayampakula Ramakanth maintained a Buy rating on Tocagen Inc today and set a price target of $14.50. The company’s shares closed yesterday at $12.17.

Ramakanth noted:

“We maintain our Buy rating of Tocagen and our 12-month price target of $14.50 per diluted share. We derive our price target based on a risk-adjusted NPV analysis of projected Toca 511 & Toca FC revenues through 2030 assuming a 12% discount rate and 2% terminal growth rate. We derive an rNPV of $402M for the products and add in pro forma net cash and cash equivalents of $82M to arrive at a 12-month price target of $14.40 per diluted share, which we round to $14.50.”

According to TipRanks.com, Ramakanth is a 4-star analyst with an average return of 7.7% and a 41.8% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Leap Therapeutics Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Tocagen Inc with a $19.88 average price target.

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