Nikola Stock Will Surge 70% From Current Levels, Says Analyst


3 “Strong Buy” Healthcare Stocks With Major Catalysts Approaching

It can happen in a New York minute. We are talking about the massive gains certain healthcare stocks are able to notch in what feels like a split second. Unlike names from other areas of the market, earnings results don’t paint the full picture. Rather, other factors like clinical trial data or regulatory decisions can be more useful in determining if a particular company is on the path to life-sustaining revenues. Therefore, any positive update can be the catalyst that sends shares blasting off towards outer space.These plays, however, aren’t without their risk. A disappointing outcome could also be the spark that ignites the flame, only launching shares in the opposite direction. This is what makes compelling healthcare stocks so difficult to spot, but the analysts can help.Using TipRanks’ database, we found three healthcare stocks getting love from the Street ahead of major possible catalysts. Each name has amassed enough bullish calls to earn a “Strong Buy” consensus rating. Hefty upside potential is also on the table here.Kala Pharmaceuticals (KALA)Developing treatments for inflammatory ocular conditions, Kala Pharmaceuticals wants to improve the lives of patients everywhere. With the October 30 PDUFA date for its EYSUVIS product fast-approaching, several analysts think that now is the time to get on board.EYSUVIS is a corticosteroid designed for the short-term treatment of signs and symptoms of dry eye disease (DED). DED is a multifactorial disease of the tears and ocular surface of the eye that causes discomfort, visual disturbances and tear film instability, which is usually accompanied by hyperosmolarity (higher concentration of salt than water in tears) and inflammation. Affecting about 16.4 million adults in the U.S., the condition has a major impact on a patient’s quality of life, and in some cases, can lead to declines in work productivity.Wedbush analyst Liana Moussatos is optimistic about the therapy’s prospects, noting that approval could come before the PDUFA date. To this end, a U.S. launch is forecasted for early 2021, with KALA set to be launch ready in Q4 2020, and the analyst believes blockbuster revenue ($1 billion) could be in store.Citing presentations from Key Opinion Leaders (KOLs), Moussatos highlights the broad market opportunity for the asset given the current unmet need and its potential position as the first approved corticosteroid in this indication.Additionally, based on clinical data, unlike already approved drugs RESTASIS, CEQUA and XIIDRA, the therapy generated a rapid onset of action, with it also overcoming well-known adverse events associated with ketosteroids such as increases in intraocular pressure (IOP).Moussatos mentioned, “Dr. Holland made specific reference in his remarks to both EYSUVIS’ rapid onset of action as well as its favorable safety profile with respect to IOP elevation as reason for his choice to use it as first-line therapy for a high percentage of his patients if approved.”Summing it all up, the analyst stated, “Given the inadequate control of dry eye flares on current standard-of-care treatments and the unwillingness of eye care professionals (except cornea specialists) to use corticosteroids off-label, we feel EYSUVIS is uniquely positioned to immediately address an underserved portion of the market using corticosteroids off-label as a short-term therapy for rapid relief while gradually addressing chronic users of immunomodulatory agents such as cyclosporine (RESTASIS, CEQUA) and lifitegrast (XIIDRA) on maintenance therapy.”To this end, Moussatos rates KALA an Outperform (i.e. Buy) along with a $39 price target. This puts the upside potential at a massive 430%. (To watch Moussatos’ track record, click here)In general, other analysts echo Moussatos’ sentiment. 4 Buys and 1 Hold add up to a Strong Buy consensus rating. With an average price target of $20.80, the upside potential comes in at 173%. (See KALA stock analysis on TipRanks)Revance Therapeutics (RVNC)Focused on innovative aesthetic and therapeutic offerings, Revance Therapeutics works to address the unmet needs of patients. As multiple catalysts are on the horizon, Wall Street is pounding the table.Investors are eagerly awaiting the FDA decision regarding RVNC’s novel botulinum toxin (BoNT) product, daxibotulinumtoxinA for Injection (DAXI), in glabellar (frown) lines. The PDUFA date is scheduled for November 25.Ahead of the decision, Guggenheim’s Seamus Fernandez has high hopes. “Given the positive SAKURA results, our approval expectations are high,” the 5-star analyst commented.That being said, Fernandez argues “DAXI’s potential in the therapeutic market is underappreciated,…

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