Interesting Take on Canaccord Genuity's $3 Price Target
Mast Therapeutics (MSTX) focuses on developing therapies for serious or life-threatening diseases. Its lead product candidate includes MST-188, a product candidate that has hemorheologic, cytoprotective, and anti-inflammatory properties, which is in phase 3 study for the treatment of sickle cell disease in patients. I rarely cover stocks that sell for less than $1 a share, but I will make an exception for this speculative biotech play.
One very interesting thing about Mast is that its entire market capitalization is represented by the net cash on its balance sheet after a recent secondary offering. The other thing that caught my eye on this stock was a report from Canaccord Genuity this week on this fifty cent a share stock. The analyst firm initiated the shares with a whopping $3 a share price target. Its analyst noted "We think MST-188 could gain significant market share given the unmet need in SCD and potential combo-Tx. Our $3.00 target is based on NPV analysis."
This is a speculative play for patient long term investors. Even Canaccord's analyst does not see a launch of MST-188 until 2017, although he also puts eventual peak sales at $400mm annually. Only three analysts cover this ~$50mm market capitalization concern. Their price targets range from $1 to $3 a share.
Many bios are stagnant for years,then they finally takeoff. I can name you so many it's not funny. If you few don't like the $3 target or major upside potential in MSTX why are you here wasting your precious time???
a4. Stop posting the obvious on MSTX from recent news. The $3 target,major upside,P3 sickle cell,$50 mil cash,a couple of non-believing longs here might mistake you for me lol. I think they're more negative than the shorts! Oh well,let's run MSTX...ticking