The Biotech Analyst Run Down For Friday

One should use common words to say uncommon things” ― Arthur Schopenhauer


Biotech continues to have a good week although we did see some profit taking in the second half of trading on Thursday even as the S&P 500 posted all-time highs.  Escalating tensions with Iran are a 'watch item' especially going into the weekend.

As we look to close out a good week for the sector, here are four biotech stocks analysts like this morning.


H.C. Wainwright initiates Iterum Therapeutics (ITRM) as a new Buy with a $17 price target.  Their valuation method is outlined below

Valuation: We employ a rNPV model, shown below, to value ITRM at $17 per share. We estimate the current risk- adjusted per-share value of sulopenem across its three indications: (1) $6.44 for cUTI (68% POS; $244M peak revenues in 2035); (2) $5.31 for uUTI (65% POS; $179M peak sales in 2035); and (3) $5.46 for cIAI (68% POS; $153M peak sales in 2035).”

William Blair would be an 'aggressive buyer' of Exelixis (EXEL) which is down just less than five percent in pre-market on a disappointing trial result.  Blair reiterates their Buy rating on this oncology concern.  Blair's analyst says 'that while the news is disappointing, he reiterates that his bullish thesis resides in Exelixis's growth potential, driven by the Cabometyx franchise. As a result, the melanoma clinical setback does not impact the analyst's stock outlook. Further, the analyst points out that he and the Street have not modeled revenue contribution from the IMspire170 study.'

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Next up is Catalent (CTLT), a name we recently provided a 'deep dive' around.  Jefferies upgrades the name from Hold to a Buy while bumping up its price target twelve bucks a share to $62.  Jefferies provides this commentary

CTLT’s profile has been shifting to high-value, higher growth biologics, with the Paragon deal adding an exclamation point. Further, recent headwinds for the more mature businesses are abating. We are higher than consensus on revenue and EBITDA, and further, believe as CTLT's mix evolves toward 50% biologics, it commands a higher multiple (currently 12.3x, our target ~16x)...either freestanding or to a strategic partner."

Finally, Qiagen (QGEN) sees is price target raised two bucks to $45 at Barclays which maintains its Buy rating on the stock.  Barclay's analyst states 'the strategy updates at yesterday's analyst day "support continued growth acceleration for the organization" and is pleased with the company's steps to build out its portfolio.'

And those are four small cap concerns receiving analyst 'shout outs' today.

Appearance blinds, whereas words reveal.” ― Oscar Wilde

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Thank You & Happy Hunting,


Bret Jensen

Founder, The Biotech Forum, The Busted IPO Forum & The Insiders Forum

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