Analysts Offer Insights on Healthcare Companies: Revance Therapeutics (NASDAQ: RVNC) and Tandem Diabetes Care Inc (NASDAQ: TNDM)

By Ryan Adsit

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Revance Therapeutics (RVNCResearch Report) and Tandem Diabetes Care Inc (TNDMResearch Report) with bullish sentiments.

Revance Therapeutics (RVNC)

Mizuho Securities analyst Difei Yang maintained a Buy rating on Revance Therapeutics today and set a price target of $37. The company’s shares closed yesterday at $17.07, close to its 52-week low of $16.56.

Yang noted:

“We do not see earnings as the most meaningful indicator of value for early-stage biotechs. Rather, we believe value lies in clinical assets and development. Revance remains on track to file a BLA for DAXI (RT002) in 1H19 and we anticipate a product launch in 2H20. We continue to see significant value in the company’s manufacturing assets, which have led to important collaboration deals. 2019 equity offering, Revance should have sufficient cash to get through most of 2020. $37 PT.”

According to TipRanks.com, Yang is a 5-star analyst with an average return of 18.3% and a 50.0% success rate. Yang covers the Healthcare sector, focusing on stocks such as Nightstar Therapeutics Limited, Xeris Pharmaceuticals Inc, and Alder Biopharmaceuticals.

Currently, the analyst consensus on Revance Therapeutics is a Strong Buy with an average price target of $38.17, which is a 123.6% upside from current levels. In a report issued on February 14, H.C. Wainwright also initiated coverage with a Buy rating on the stock with a $25 price target.

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Tandem Diabetes Care Inc (TNDM)

In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on Tandem Diabetes Care Inc, with a price target of $68. The company’s shares closed yesterday at $49.41, close to its 52-week high of $52.55.

Lichtman commented:

“TNDM’s 4Q sales of $76.2M (+89% y/y) were well above our/Street’s $54.7M/ $56.4M led by strong US pump shipments (+86% y/y), and higher international performance ($7M). Strong pump sales were supported by the August Basal-IQ launch, accelerated momentum in pump renewals as well as opportunities (both US/ OUS) created by the JNJ Animas exit. Gross margin beat (54.5% vs. our 49.1%). FY19 guidance is ahead at $255-270M versus our/Street’s $211M/$219M including a more robust expectation out of international at $45-50M. TNDM also announced that on 3/1, CEO Kim Blickenstaff will transition to a new Executive Chairman role and will be succeeded by COO John Sheridan. Control-IQ clinical study follow-up is expected to be completed in April (ADA presentation) with anticipated launch during 3Q19. Reiterate Outperform.”

According to TipRanks.com, Lichtman ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -4.8% and a 49.2% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Zimmer Biomet Holdings, and Integra Lifesciences.

Currently, the analyst consensus on Tandem Diabetes Care Inc is a Strong Buy with an average price target of $61, which is a 23.5% upside from current levels. In a report issued on February 14, Piper Jaffray also maintained a Buy rating on the stock with a $60 price target.

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