Analysts Are Bullish on Top Healthcare Stocks: Asterias Biotherapeutics (AST), Cyclacel Pharmaceuticals (CYCC)

By Jason Carr

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Asterias Biotherapeutics (NYSE:AST) and Cyclacel Pharmaceuticals (NASDAQ:CYCC) with bullish sentiments.

Asterias Biotherapeutics (AST)

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Asterias Biotherapeutics, with a price target of $11. The company’s shares closed yesterday at $1.60, close to its 52-week low of $1.20.

Selvaraju said:

“Valuation methodology, risks and uncertainties. We use a sum-of- the-parts approach, which ascribes a $440M risk-adjusted net present value (rNPV) to the AST-OPC1 program in AST-VAC programs in NSCLC and prostate cancer.”

According to TipRanks.com, Selvaraju is a 4-star analyst with an average return of 5.7% and a 48.6% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Synergy Pharmaceuticals Inc.

Currently, the analyst consensus on Asterias Biotherapeutics is a Moderate Buy with an average price target of $8.50.

See today’s analyst top recommended stocks >>

Cyclacel Pharmaceuticals (CYCC)

In a report released today, Jotin Marango from Roth Capital initiated coverage with a Buy rating on Cyclacel Pharmaceuticals and a price target of $8. The company’s shares closed yesterday at $1.57.

Marango said:

“We believe that Cyclacel, its clinical CDK inhibitor CYC065, and its indirect target MCL-1 should all go into the watchlist of anyone interested in CLL. While the checkered past of the prior pipeline has left the company trading at cash in a penalty box, we believe that it is now time for the Street to revisit Cyclacel’s clinical prospects and valuation as the new lead candidate CYC065 begins expanding its clinical footprint. We are initiating with Buy and $8 PT. In our view, CYC065 is active, and going places. Phase 1 data from the last AACR painted the picture of a targeted agent with potentially broad applicability (clinical response in Cyclin-E tumors). Up next, CYC065 is headed at least into Phase 1b studies in R/R CLL (in combination with the BCL-2 inhibitor venetoclax), and advanced leukemias.”

According to TipRanks.com, Marango is a 4-star analyst with an average return of 26.8% and a 53.7% success rate. Marango covers the Healthcare sector, focusing on stocks such as KalVista Pharmaceuticals Inc, Stemline Therapeutics Inc, and Actinium Pharmaceuticals.

Currently, the analyst consensus on Cyclacel Pharmaceuticals is a Moderate Buy with an average price target of $7.50.

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