Analysts Offer Insights on Healthcare Companies: Mirati Therapeutics (NASDAQ: MRTX) and Spectrum Pharmaceuticals (NASDAQ: SPPI)

By Ryan Adsit

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Mirati Therapeutics (MRTXResearch Report) and Spectrum Pharmaceuticals (SPPIResearch Report).

Mirati Therapeutics (MRTX)

In a report released yesterday, Varun Kumar from Cantor Fitzgerald reiterated a Hold rating on Mirati Therapeutics, with a price target of $66. The company’s shares opened today at $71.

Kumar said:

“. We reiterate our Neutral rating and 12-month price target of $66 on MRTX. This evening, ASCO abstracts for oral and poster presentations were published online that included Amgen’s (N, covered by A. Young) first clinical data from its KRASi AMG510, which is a potential read to Mirati’s MRTX849. Overall, early AMG510 data seem to be still preliminary, and full data at ASCO (6/3) will remain a key investor focus to assess single-agent vs. combo strategy, in our view. We have provided more detailed color on pgs. 2-5. Amgen’s KRASi AMG510 early data in abstract still preliminary. In the dose- escalation stage, AMG510 reported 1 confirmed PR (11% ORR) from 9 evaluable patients (of total 22 pts.).”

According to TipRanks.com, Kumar is ranked #2740 out of 5183 analysts.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Mirati Therapeutics with a $84 average price target, a 18.3% upside from current levels. In a report issued on May 13, Citigroup also maintained a Hold rating on the stock with a $76 price target.

See today’s analyst top recommended stocks >>

Spectrum Pharmaceuticals (SPPI)

Cantor Fitzgerald analyst Alethia Young reiterated a Buy rating on Spectrum Pharmaceuticals yesterday and set a price target of $17. The company’s shares opened today at $8.77, close to its 52-week low of $6.22.

Young wrote:

“: We reiterate our Overweight rating and $17 price target. Competitive TAK-788 data from Takeda (NC) were included in ASCO abstracts. We are highlighting that ASCO abstracts released tonight (5/15) included additional data from TAK-788, which is Takeda’s competitive drug in NSCLC with EGFR exon 20 insertions. Of particular focus is the expanded cohort at 160mg QD in its dose finding study. The TAK-788 Ph1/2 study is ongoing at many sites in the US. In talking to the Spectrum CMO, we think poziotinib’s profile potentially looks better, but we would like to see more detail on durability and safety before making relative comparisons.”

According to TipRanks.com, Young is a 4-star analyst with an average return of 4.9% and a 44.5% success rate. Young covers the Healthcare sector, focusing on stocks such as BioMarin Pharmaceutical Inc., Vertex Pharmaceuticals, and Sarepta Therapeutics.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Spectrum Pharmaceuticals with a $24.50 average price target, implying a 179.4% upside from current levels. In a report issued on May 10, H.C. Wainwright also maintained a Buy rating on the stock with a $41 price target.

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