Analysts Are Bullish on These Healthcare Stocks: Unum Therapeutics Inc (UMRX), Global Blood Therapeutics (GBT)

By Carrie Williams

There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Unum Therapeutics Inc (UMRXResearch Report), Global Blood Therapeutics (GBTResearch Report) and Mustang Bio Inc (MBIOResearch Report) with bullish sentiments.

Unum Therapeutics Inc (UMRX)

H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Unum Therapeutics Inc today and set a price target of $18. The company’s shares closed last Monday at $1.79, close to its 52-week low of $1.75.

Fein noted:

“Our price target of $18/share is based on an equally-weighted composite of: (a) $18.0/share, as a 25x multiple of taxed and diluted $7.63 discounted back to FY19 at 30% (in line with the expected PE multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $17.5/share (discounted cash flow analysis using a 18.0% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”

According to TipRanks.com, Fein is a 2-star analyst with an average return of 0.2% and a 40.4% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Unum Therapeutics Inc with a $12 average price target.

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Global Blood Therapeutics (GBT)

In a report issued on August 9, Christopher Marai from Nomura maintained a Buy rating on Global Blood Therapeutics, with a price target of $109. The company’s shares closed last Monday at $48.85.

Marai commented:

“GBT Rivipansel Failure Highlights Broad Difficulties with VOC Endpoint in SCD. At EHA, GBT showed a numerical benefit in VOC; this is surprising, given the difficultly of this endpoint (including infrequent VOC events for most pts). We remain focused on the improvement in anemia and hemolysis and on the resulting benefit to organ preservation and stroke risk reduction. The recent failure of rivipansel highlights the clinical risk involved in VOC, and it reaffirms what we believe was a shrewd decision to focus on higher-priority disease sequelae. Further, we expect rivipansel’s failure on the VOC endpoint to further support the FDA’s/SCD communities move beyond the endpoint. HCPs Understand the Importance of Organ Damage and Stroke Risk in SCD; Encouraging GBT Potential Launch. VOC is the most “visible” symptom, but 67% of patients have one or few VOC events per year.”

According to TipRanks.com, Marai is a 4-star analyst with an average return of 7.0% and a 49.3% success rate. Marai covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Voyager Therapeutics Inc, and Protagonist Therapeutics.

Currently, the analyst consensus on Global Blood Therapeutics is a Strong Buy with an average price target of $91.90, implying a 90.3% upside from current levels. In a report issued on August 7, William Blair also maintained a Buy rating on the stock.

Mustang Bio Inc (MBIO)

Mustang Bio Inc received a Buy rating and a $7 price target from H.C. Wainwright analyst Joseph Pantginis today. The company’s shares closed last Monday at $2.89, close to its 52-week low of $2.18.

Pantginis commented:

“Valuation and risks to price target achievement. We are initiating coverage of Buy rating and $7 price target. Our current valuation is based on the MB-107 opportunity in XSCID (7%) followed by the MB-102 opportunity (93%) in both r/r AML and MDS. In XSCID, we project a 2022 and 2023 launch in the U.S. and E.U., based on a 30% projected chance of success and $41 million and $47 million in peak sales, respectively. For r/r AML, we project a 2024 and 2025 launch in the U.S. and 30% chance of success off of $573 million and $499 million in peak sales, respectively.”

According to TipRanks.com, Pantginis has 0 stars on 0-5 star ranking scale with an average return of -11.9% and a 29.8% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Lineage Cell Therapeutics, Inc., Applied Genetic Technologies, and Iovance Biotherapeutics Inc.

Currently, the analyst consensus on Mustang Bio Inc is a Moderate Buy with an average price target of $7.

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