2 Healthcare Sector Newcomers Seeing Analyst Attention

Analysts are weighing in bullishly on both stocks

by Josh Selway

Published on Oct 8, 2019 at 10:21 AM

SpringWorks Therapeutics Inc (NASDAQ:SWTX) and Satsuma Pharmaceuticals Inc (NASDAQ:STSA) both went public fairly recently, and now analysts are weighing in. Let's take a look at how Wall Street is lining up on the shares of SWTX and STSA.

For SWTX, J.P. Morgan Securities, Cowen, and Wedbush all began coverage with the equivalent of a "buy" rating, with the latter firm setting the highest price target at $33. Meanwhile, J.P. Morgan Securities added that the company's drug for shrinking tumors, nirogacestat, could be a blockbuster treatment.

SpringWorks had its initial public offering (IPO) back on Sept. 13, opening for trading at $24.50. They rallied out of the gate, getting to $28.62 on Sept. 24, but pulled back sharply from that peak, falling to $17.66 on Sept. 27. Today, the stock's up 2.8% at $19.20.

For STSA, it also received three bullish analyst ratings, and SVB Leerink had the highest price target at $20. The brokerage firms are bullish on the company's main migraine drug, STS101, with Credit Suisse suggesting the path to regulatory approval looks promising.

Satsuma Pharmaceuticals stock has struggled since its IPO a month ago. It opened at $19, but has been sliding lower since, today hitting an all-time low of $10.05. At last check, the shares were down 4.7% at $10.20, set for a third straight loss.


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