4 Hot Analyst Reads For Wednesday, May 30th

The following is a synopsis of recent analyst activity that could buoy these small cap biotech stocks in trading

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Here are our four hot analyst reads before the market opens this Wednesday.

T2 Biosystems gets its price target raised to $14 from $8.50 a share this morning over at H.C. Wainwright who maintains a Buy rating on the medical device maker. Yesterday, the FDA approved its new bacteria panel that will drastically reduce the amount of time to detect and treat types of Sepsis, a bacterium that kills tens of thousands in hospitals every year. The company also announced a secondary offering on the recent run up in the shares after the bell yesterday.

Here is what the analyst at Wainwright had to say after 'uncertainty' around FDA approval had been removed around the investment case for T2 Biosystems.

"T2Bacteria (the newly approved panel) could generate four times the volume seen with T2Candida,and notes this is the first FDA-cleared test to identify sepsis-causing bacteria directly from whole blood. Importantly, T2Bacteria provides test results in approximately five hours, which is more than 2.5 days faster than blood culture-dependent tests."

This morning, Cantor Fitzgerald reiterates its Overweight rating on TherapeuticsMD (TXMD), with a price target of $26. Yesterday, the FDA approved its application for its product IMVEXXY for the treatment of moderate-to-severe dyspareunia, a symptom of vulvar and vaginal atrophy, due to menopause. Here is what Fitzgerald's analyst had to say about the approval.

"We are reiterating the Overweight rating and $26 PT for TXMD stock. FDA approval of TX-004, now known as Imvexxy, for treating vulvar vaginal atrophy (VVA) sets the company on a course to bring two important therapies to the market for treating symptoms associated with menopause, in our opinion. With the approval, TXMD can access $75 million from the recently-struck loan agreement. The PDUFA date for TX-001, an investigational drug for treating vasomotor symptoms (VMS, aka, hot flushes) of menopause is October 28. If approved, 2018 should be regarded as the most important year in the company’s history, in our view.”

We covered TherapeuticsMD as a stock to watch this week in our Biotech: The Week Ahead column that came out this Saturday.

Piper Jaffray reissues its Buy rating and $190 price target on Inogen (INGN) this morning after that stock's hiccup late last week. Jaffray's analyst had this to say around the prospects for the equity

"The recent pullback in the shares are unwarranted and we recommend buying the shares at current levels. Our firm's survey of 66 home medical equipment providers indicates the shift to portable oxygen concentrators "remains strong." The market remains in the early innings of this conversion and Inogen is the best way to play this thematic trend. We expect ResMed's (RMD) Mobi to launch this year, but does not expect it to be overly impactful to Inogen. Consensus numbers already reflect a deceleration in growth in the second half of 2018 which is unlikely to materialize"

The stock seems to have already recovered from last week's 'blip'.

Finally, late yesterday Wells Fargo was out maintaining its Outperform rating on Israel based Mediwound (MDWD) that also received positive newsfrom the FDA Tuesday. This is Fargo's take on the company now.

"MediWound could be more attractive to a broader range of potential buyers, including those in the medical countermeasure space, after the FDA cleared the development pathway for NexoBrid for the debridement of skin injuries inflicted by chemical warfare agent sulfur mustard. The FDA also agreed to allow the development of NexoBrid in sulfur mustard wounds to rely on the chemistry, manufacturing and control data from NexoBrid's previous and ongoing development in burns."

And those are four small cap firms that garnered positive analyst commentary just before the market open this Wednesday.

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