Purgatory surpasses heaven and hell in poetry, because it represents a future and the others do not.” ― François-René de Chateaubriand
The biotech sector had its second day of manageable losses this trading week on Tuesday. Today, pre-market futures are up slightly so hopefully the sector can end its two-day losing streak.
As the market opens this Wednesday, here are four small biotech stocks garnering positive analyst commentary.
Mizuho Securities reiterates their Buy rating and $63 price target on Supernus Pharmaceuticals (SUPN) despite being obviously disappointed by a recent investor presentation by the company. Here is their updated view on this small, fast growing biopharma.
We believe the Day failed to rally SUPN because of the cautious body language around the SPN-810 asset in impulsive aggression. We believe investors may avoid the pending Phase III SPN-810 impulsive aggression read-out in 2H:19 (next big catalyst/clearing event for the stock) because mgmt. highlighted the pioneering aspects of its program, and its unprecedented reliance on daily caregiver data reports. We reiterate our Buy rating as SUPN trades below our $47 bear case valuation which assigns no value to SPN-810.”
Aurora Canabis (OTC:ACB) gets initiated as a new Buy with a $11 price target at Merrill Lynch today. Merrill's analyst states the company 'has a low cost production model, can protect margins in an oversupplied market, and the ability to serve a global market. Aurora also has long-time consumer investor, Nelson Peltz, as a Strategic Advisor which should accelerate partnership transactions'
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We recommend buying ZSAN, a development and platform technology company focused on rapid administration of drugs using the company’s proprietary Adhesive Dermally Applied Microarray (BATS:ADAM) technology, given its products’ superior clinical efficacy and safety profiles, and ease of use.”
Finally, Acer Therapeutics (ACER) gets a 'shout out' from H.C. Wainwright. The small analyst firm maintains its Buy rating and $55 price target on ACER today and provides their valuation methodology for this equity
Valuation methodology and risks. We value Acer using a composite risk-adjusted net present value (rNPV) approach, which employs a 15% discount rate and 30% tax rate across all future cash flows, while ascribing an 85% probability of success to EDSIVO and a 60% and 50% probability of success to ACER-001 in urea cycle disorders (UCDs) and maple syrup urine disease (MSUD), respectively. This yields a total rNPV of $720M, with $430M coming from EDSIVO and $290M from ACER-001.”
And those are four small cap concerns analysts like this morning.
Politics is the art of promising heaven and delivering purgatory, and claiming hero status for saving your country from hell.” ― Bangambiki Habyarimana
Thank You & Happy Hunting,
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