Analysts Offer Insights on Healthcare Companies: Avrobio Inc (NASDAQ: AVRO) and Pluristem (NASDAQ: PSTI)

By Carrie Williams

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Avrobio Inc (AVROResearch Report) and Pluristem (PSTIResearch Report) with bullish sentiments.

Avrobio Inc (AVRO)

In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on Avrobio Inc, with a price target of $40. The company’s shares closed yesterday at $14.05, close to its 52-week low of $12.96.

Chattopadhyay commented:

“Our $40 price target is derived from a risk-adjusted, sum-of-the-parts analysis that drives our DCF analysis, which is based on: beta of 1.15, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 8.5%, and tax rate of 15% beginning in FY 2028. Our price target reflects uncertainties stemming from the clinical update from the Fabry program (AVR-RD-01), resulting in: (1) a push out of our launch estimate into 2H-2022, vs. prior 2H-2021; and (2) lower Fabry POS of 25% from 30%.”

According to TipRanks.com, Chattopadhyay is ranked 0 out of 5 stars with an average return of -7.8% and a 38.0% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Autolus Therapeutics Plc, and Voyager Therapeutics Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Avrobio Inc with a $40 average price target.

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Pluristem (PSTI)

In a report released today, Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Pluristem, with a price target of $3.50. The company’s shares closed yesterday at $1.12.

Ramakanth said:

“We maintain our Buy rating of Pluristem and our 12-month price target of $3.50 per share. We derived our price target based on the average of two valuation methods: 1) price-sales multiple analysis applying a 6x multiple to our 2026 sales estimate discounted at 14%; and 2) price-earnings multiple analysis applying a 21x multiple to our 2026 estimated earnings discounted at 14%. Using the average of the two methods, we arrive at a 12-month price target of $3.60 per share, which we round to $3.50.”

According to TipRanks.com, Ramakanth is ranked 0 out of 5 stars with an average return of -6.2% and a 29.0% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Collplant Holdings Ltd.

Pluristem has an analyst consensus of Moderate Buy, with a price target consensus of $3.25.

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