Paul Choi, an analyst from Goldman Sachs, maintained the Buy rating on Lantheus. The associated price target is $140.00.
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Paul Choi has given his Buy rating due to a combination of factors surrounding Lantheus’s current and future market positioning. Despite the pricing pressures faced by Lantheus’s Pylarify, particularly with the expiration of its pass-through status and the implementation of the mean unit cost pricing for Medicare fee-for-service coverage, the company remains optimistic about its growth prospects. The proposed rule by CMS suggests a modest increase in reimbursement rates for radiopharmaceutical diagnostics, which could benefit Lantheus in the long term.
Furthermore, while there are challenges with the current pricing model, there is potential for a shift towards an average sales price model, which could provide a more favorable pricing environment. This potential shift, coupled with the company’s strategic discussions with CMS, indicates a positive outlook for Lantheus. Paul Choi remains constructive on the longer-term outlook for Pylarify, anticipating sequential growth and improved margins, which supports his Buy rating.
Choi covers the Healthcare sector, focusing on stocks such as Urogen Pharma, Amarin, and Lantheus. According to TipRanks, Choi has an average return of 7.4% and a 53.98% success rate on recommended stocks.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $110.00 price target.