Healthcare Business

Why 4 Jefferies Franchise List Stocks Could Be Big Second-Half Winners

Gilead Sciences has collaboration agreements with Arcus Biosciences, Pionyr, Tizona, Tango Therapeutics, Jounce Therapeutics, Galapagos, Janssen, Japan Tobacco, Gadeta, Bristol-Myers Squibb, Merck and Novo Nordisk.

Investors receive a very enticing 4.13% dividend. The $80 Jefferies price target is higher than the $74.49 consensus price target. Gilead Sciences stock ended last week’s trading at $68.77 per share.

STARR Surgical

This is an outstanding idea for aggressive growth investors looking for health care exposure, and it is one of the newest additions to the Franchise Picks list. STARR Surgical Co. (NASDAQ: STAA) designs, develops, manufactures, markets and sells implantable lenses for the eye, as well as companion delivery systems to deliver the lenses into the eye.

The company provides Visian implantable Collamer lens (ICL) product family to treat visual disorders, such as myopia, hyperopia, astigmatism and presbyopia. Hyperopic ICL treats far-sightedness. It also offers preloaded silicone intraocular lenses, as well as preloaded injectors for use in cataract surgery. In addition, the company sells injector parts and other related instruments and devices. STAAR Surgical markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities and distributors.

The Jefferies team is very positive on the company and noted this when adding the stock to the Franchise List earlier this month:

Our conviction in STAA shares is based on our proprietary surveys of both refractive surgeons (n=50) and consumers (n=750), along with our bottom’s up total addressable market analysis. Collectively, the data suggests that the EVO Visian ICL could replace the current gold standard LASIK as the lead US refractive surgical option within 3-5 year post launch (expected late 2021). Our sum-of-the-parts analysis supports ~$90-$110 for the myopia opportunities alone, suggesting the current valuation bakes in minimal contribution from Viva in presbyopia markets.

Jefferies has set a $150 price target. The $138.00 consensus is also lower than Friday’s closing share price of $147.01.

These four outstanding stocks in the health care space offer plenty of upside potential for investors long term and look like very solid ideas for the rest of 2021, especially with an overbought and pricey market.