Analysts’ Top Healthcare Picks: Amarin (AMRN), MacroGenics (MGNX)

By Jason Carr

There’s a lot to be optimistic about in the Healthcare sector as 3 analysts just weighed in on Amarin (AMRNResearch Report), MacroGenics (MGNXResearch Report) and Omeros Corp (OMERResearch Report) with bullish sentiments.

Amarin (AMRN)

In a report released today, Andrew Fein from H.C. Wainwright reiterated a Buy rating on Amarin, with a price target of $51. The company’s shares closed yesterday at $18.59.

Fein noted:

“Our PT of $51 is based on equally weighted average of: (a) $47.99/share, as a 25x multiple of taxed and diluted FY29 GAAP EPS of $5.45 discounted back to and (b) an NPV of $53.14/share (discount rate 10%, growth rate 2%). Risks to our investment thesis and target price include: (1) Vascepa commercial ramp-up and/or peak sales not meeting our projections; and (2) further competitive disruption of the omega-3 market by branded drugs or generics and/ or OTC supplements beyond our model.”

According to TipRanks.com, Fein is a 2-star analyst with an average return of 0.2% and a 39.2% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.

Amarin has an analyst consensus of Strong Buy, with a price target consensus of $32.67, which is a 75.7% upside from current levels. In a report issued on July 24, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $35 price target.

See today’s analyst top recommended stocks >>

MacroGenics (MGNX)

H.C. Wainwright analyst Debjit Chattopadhyay maintained a Buy rating on MacroGenics today and set a price target of $39. The company’s shares closed yesterday at $14.39.

Chattopadhyay noted:

“Our 12-month, $39 price target for shares of MacroGenics is based on a 12-year DCF-driven sum-of-the-parts analysis. Our DCF is driven by: beta of 1.57, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 10.0%, and tax rate of 15% beginning in FY 2027. (21%), flotetuzumab (18.5%) together represent our full target. Risks potentially incurred investing in this stock include: clinical and development, financial, regulatory and reimbursement, and commercial.”

According to TipRanks.com, Chattopadhyay is a 1-star analyst with an average return of -0.7% and a 46.3% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Precision BioSciences Inc, and Voyager Therapeutics Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for MacroGenics with a $28.40 average price target, representing a 97.4% upside. In a report issued on July 17, Cowen & Co. also maintained a Buy rating on the stock.

Omeros Corp (OMER)

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Omeros Corp, with a price target of $35. The company’s shares closed yesterday at $15.51.

Selvaraju wrote:

“We note that Lonza is one of the world’s largest specialty manufacturing companies operating in the life sciences arena, having generated CHF5.5B in revenue for 2018, of which CHF3.1B came from the company’s Pharma and Biotech business. In anticipation of the near- term submission of regulatory filings for approval of narsoplimab, we reiterate our Buy rating and 12-month price target of $35 per share. Rapid narsoplimab review process likely, in our view. We expect the narsoplimab BLA to be reviewed in an accelerated manner, given the Breakthrough Therapy Designation (BTD) accorded to the drug in HSCT-TMA. The FDA has eliminated any requirement for a historical control and may permit not only accelerated approval, but also full approval with the determination to be made based on the submitted data. Beyond HSCT-TMA, Omeros continues to enroll its OMS721 Phase 3 trials for IgAN and aHUS.”

According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.5% and a 29.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Omeros Corp with a $27.75 average price target.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.