“It has been my observation that most people get ahead during the time that others waste” ― Henry Ford
Here are four hot analyst reads before the market opens for Tuesday, May 15th.
Late yesterday, Cantor Fitzgerald reissued its Buy rating and $14 price target on Corium (CORI). Cantor’s analyst provided the following commentary behind his positive view
Donepezil patch filing on track for early 2019 filing. Owing to a previously disclosed need to conduct 12-month stability testing with the patch size used in the pilot BE study, the NDA filing is expected to occur in early calendar 1Q19. In the meantime, the company is conducting ancillary testing needed for approval, e.g., skin tolerability, alternative patch application site and heat effect studies. Notwithstanding the slight filing push, we believe it reasonable that the patch could be approved before the end of 2019”
Source: Recent Company Investment Presentation
It was the first analyst take on this small cap name since H.C. Wainwright reiterated its own Buy rating with the exact price target on CORI on February 9th.
Aquinox Pharmaceuticals (AQXP) picked its third positive analyst rating in a week late Monday. Canaccord Genuity reissued its Buy rating and $22 price target with the following analyst notes
We had the pleasure of hosting Aquinox CEO David Main for meetings with institutional investors in Boston last week. Overall, investors focused on upcoming LEADERSHIP 301 data assessing lead drug candidate rosiptor in bladder pain syndrome/interstitial cystitis (BPS/IC), and on the regulatory and competitive landscape for BPS/IC. With enrollment of the Ph3 LEADERSHIP 301 trial completed in February, AQXP remains on track to deliver top-line data in 3Q18. We reiterate our BUY rating and $22 PT. Signs Asian development and commercialization agreement with Astellas Pharma for rosiptor in IC/BPS and other indications”
Source: Recent Company Investment Presentation
Last week, Cantor Fitzgerald reiterated its Buy rating on this name with a $28 price target. Needham followed two days later by assigning a new Buy rating on AQXP with $25 price target.
Supernus Pharmaceuticals (SUPN) just saw its first analyst price target raise after its blowout first quarter results last Tuesday. The small biopharma posted earnings of 47 cents a share, 16 cents above the consensus. Revenues improved 57% from the year ago period to $90 million, over $5 million above expectations. That was good enough for B Riley FBR to lift its price target $14 to $68 a share Monday. It also provided the following 'color'
We update our model with some modest EPS estimate increases in 2018 and 2019 of $0.10 and $0.05 to $2.00 and $2.80 respectively. We expect Supernus (SUPN) to remain a high- growth company and we roll forward our valuation to 2019; we raise our price target from $54 per share to $68. Our new EPS forecasts represent 87% Y/Y growth for 2018 and 40% growth for 2019. Additionally, we expect the company to release key pivotal data for its pipeline drugs SPN-812 (non-stimulant ADHD) and SPN-810 (impulsive aggression) by 1Q19 and an investigator-sponsored trial for Oxtellar XR in bipolar disorder should be fully enrolled by end of 2018
Finally, we see the first positive action in gene editing concern Editas Medicine (EDIT) since JMP Securities lifted its price target on EDIT from $40 to $67 on March 7th. Chardan Capital reissues its Buy rating and $55 on Editas within its macro call on the space. This is what Chardan's analyst had to say behind his positive view
We are overweight the gene editing space on “scarcity value”. We believe there are far fewer credible companies in gene editing than there are maturing opportunities to meet profound societal needs, and see the likelihood big biopharma recognizes this scarcity value and continues to increase exposures. Accordingly, we expect broad outperformance for the sector and anticipate investors may take positions based on certain company characteristics. Editas Medicine (Buy, PT$55), on its affiliation with the Broad Institute, to us has the best intellectual property (IP) positions in the CRISPR-based gene editing space, which may be of greater interest to investors in the space focused on longer-term IP strength and flexibility .
And those are four small biotech concerns receiving some love from analysts early in the trading week.
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