JMP Feeling Mostly Good On 4 Drug, Healthcare Stocks

Four companies in the healthcare and pharmaceuticals sectors posted mixed results that left analysts at JMP Securities mostly feeling good.

Adeptus Health Inc's ADPT closed Friday up nearly 2 percent on strong quarterly results.

JMP analyst Peter L. Martin expects Adeptus shares to soon fall back in the face of a potential offering of stock from its
largest shareholder and private equity sponsor Sterling Partners.

Martin, who maintained an Outperform rating on Adeptus and boosted his target to 10 percent to $44, said the potential offering could make "an ideal entry point" for investors.

Adeptus will likely exceed expectations given its pace for opening new hospitals and the opportunities for free-standing emergency departments, according to Martin.

Vanda Pharmaceuticals Inc. VNDA closed Friday up 1 percent at $11.43 after posting results that missed expectations along with an upbeat outlook.

JMP's Jason N. Butler maintained an Outperform rating and $30 target.

Butler cited potential for the company's recently launched Hetlioz sleep disorder drug as well as the pending rollout of its Fanapt anti-psychotic treatment.

Select Medical Holdings Corporation SEM missed quarterly expectations and closed down Friday at $13.47, off nearly 4 percent.

Martin maintained an Underperform rating on Select along with an $11 target. Select's recent changes in its long-term care hospitals' policy will produce "a significant headwind to profitability," Martin said.

Ariad Pharmaceuticals, Inc. ARIA closed Friday at $8.06, up nearly 11 percent after posting better-than-expected fourth-quarter results.

JMP's Michael G. King maintained an Outperform rating and $8 target on Ariad, citing recent performance and noting the development-stage drug company, has sufficient cash to carry it through 2016.