Analysts’ Opinions Are Mixed on These Healthcare Stocks: Abiomed (NASDAQ: ABMD), SAGE Therapeutics (NASDAQ: SAGE) and Globus Medical (NYSE: GMED)

By Carrie Williams

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Abiomed (ABMDResearch Report), SAGE Therapeutics (SAGEResearch Report) and Globus Medical (GMEDResearch Report).

Abiomed (ABMD)

In a report issued on May 2, Sean Lavin from BTIG maintained a Buy rating on Abiomed, with a price target of $340. The company’s shares closed yesterday at $268.95.

Lavin observed:

“Term; Trimming PT to $340 From $400 Abiomed missed estimates in the quarter, delivering sales of $207M, short of consensus’ $219M forecast. Most of the weakness was U.S. driven, due to a weak cath lab (also seen in peer results) and to a greater extent, mix disruption leading to mgmt’s disproportionate focus away from protected PCI/elective procedures. To reflect these pressures, mgmt’s initial FY20 outlook calls for revenue growth of 17-23%, 6% below what mgmt (and we) would’ve considered more likely (and exactly the exact magnitude of the FQ4 shortfall). Mgmt outlined a number of initiatives to address these issues and noted that April is reportedly promising. The fact that mgmt still remains confident in addressable market and has left room to revise guidance during its next earnings call suggest there is good chance of upside.”

According to TipRanks.com, Lavin is a 4-star analyst with an average return of 6.9% and a 55.5% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Abiomed with a $370 average price target, implying a 37.6% upside from current levels. In a report issued on April 24, Piper Jaffray also maintained a Buy rating on the stock with a $480 price target.

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SAGE Therapeutics (SAGE)

In a report issued on May 2, Cory Kasimov from J.P. Morgan maintained a Buy rating on SAGE Therapeutics, with a price target of $205. The company’s shares closed yesterday at $171.03, close to its 52-week high of $177.14.

According to TipRanks.com, Kasimov is a 3-star analyst with an average return of 0.6% and a 41.8% success rate. Kasimov covers the Healthcare sector, focusing on stocks such as Ultragenyx Pharmaceutical, Inc., BioMarin Pharmaceutical Inc., and ACADIA Pharmaceuticals Inc.

SAGE Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $212.45, representing a 24.2% upside. In a report issued on April 25, Jefferies also initiated coverage with a Buy rating on the stock with a $195 price target.

Globus Medical (GMED)

BTIG analyst Ryan Zimmerman maintained a Hold rating on Globus Medical on May 2. The company’s shares closed yesterday at $43.96.

Zimmerman noted:

“We maintain our Neutral rating on GMED shares following 1Q19 results which were below expectations driven by softer robotic sales and the impact of a warning letter on biologics. Total revenue came in at $182.9M vs. BTIG/Consensus of $188.4/$186.6M. Guidance for FY19 is maintained but with mgmt. noting an elongated sales cycle for robotics we worry that competitive dynamics are only becoming tougher (as previewed here), which may limit upside to numbers. GMED’s non-robotic business (+8.7% Y/Y) largely benefited from OUS strength (+27.9% Y/Y) which saw stocking orders in the Q (expected to moderate through the rest of the year) and continued rep hires supporting growth.”

According to TipRanks.com, Zimmerman is a top 100 analyst with an average return of 38.8% and a 74.5% success rate. Zimmerman covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Integra Lifesciences, and OrthoPediatrics Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Globus Medical with a $53.50 average price target, which is a 21.7% upside from current levels. In a report issued on May 3, Oppenheimer also maintained a Hold rating on the stock with a $52 price target.

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