Analysts Offer Insights on Healthcare Companies: Catabasis Pharmaceuticals (NASDAQ: CATB) and Spero Therapeutics Inc (NASDAQ: SPRO)

By Carrie Williams

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Catabasis Pharmaceuticals (CATBResearch Report) and Spero Therapeutics Inc (SPROResearch Report) with bullish sentiments.

Catabasis Pharmaceuticals (CATB)

In a report released yesterday, Hartaj Singh from Oppenheimer reiterated a Buy rating on Catabasis Pharmaceuticals, with a price target of $72. The company’s shares closed yesterday at $5.80, close to its 52-week low of $3.60.

Singh said:

“Catabasis (CATB) reported 4Q18 earnings and provided an investor update on 03/14. Recruitment for the ongoing pivotal, phase 3 PolarisDMD clinical trial continues apace, with CATB expecting to conclude recruitment by 2Q18 (top-line readout in 2Q20). We are encouraged by the speed of site initiations and patient recruitment, which speaks to the strong phase 2 data from the MoveDMD study. The company continues interactions with FDA regarding a potential accelerated approval filing, and we still expect this meeting to occur in the next few months. Last, CATB reported encouraging long-term data from edasanolexent in MoveDMD that leads us to reconsider our pricing model for the drug (from US ~$50K/year to $90K/year). We adjust our PT for share dilution from recent raises and stay bullish.”

According to TipRanks.com, Singh is a 3-star analyst with an average return of 2.4% and a 45.2% success rate. Singh covers the Healthcare sector, focusing on stocks such as Strongbridge Biopharma Plc, Actinium Pharmaceuticals, and Alexion Pharmaceuticals.

Catabasis Pharmaceuticals has an analyst consensus of Moderate Buy, with a price target consensus of $45.50.

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Spero Therapeutics Inc (SPRO)

In a report released yesterday, Jay Olson from Oppenheimer maintained a Buy rating on Spero Therapeutics Inc, with a price target of $30. The company’s shares closed yesterday at $12.98.

Olson commented:

“SPRO reported 4Q financial results and pipeline update. ($0.60) was in line with our ($0.61) estimate and ($0.70)E consensus. Key development programs are on track: 1) Ph1 data for SPR994 oral carbapenem showed safety/ tolerability in 3Q18. The 600mg dose is advancing into a single pivotal Ph3, currently in start-up phase (PK/PD data in 2H19); 2) Ph1 data for SPR741 and tox data for SPR206 were positive. SPR206 SAD/MAD data in 2H19. Prioritization decisions should happen this year; and 3) SPR720 has been granted Product (QIDP) designation by the FDA. SPR720 is currently being evaluated in a Ph1 trial (data in 2H19). SPRO’s $115.4M cash balance (12/31) plus BARDA contract should fund operations into 2H2020, according to management.”

According to TipRanks.com, Olson is a 1-star analyst with an average return of -2.5% and a 42.9% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Conatus Pharmaceuticals, and Enanta Pharmaceuticals.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Spero Therapeutics Inc with a $28.50 average price target, representing an 119.6% upside. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $27 price target.

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