H.C. Wainwright Pounds the Table on AEterna Zentaris Inc. (USA)
May 21, 2015 4:42 PM EDT by Jason Cohen, Editor in Exclusively Published • Healthcare • Insights
H.C. Wainwright analyst Swayampakula Ramakanth was out pounding the table on AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) Thursday, reiterating a Buy rating and price target of $1.25, which represents a potential upside of about 315% from where the stock is currently trading.
Ramakanth wrote, “Over the last week, shares of Æterna Zentaris have been under pressure and the company is currently trading at a market cap of $28M, barely half of its reported 1Q15 cash of $53M. At an estimated fully-diluted share count of 215M shares (with all warrants exercised) and the current price of $0.32 per share, this translates to an enterprise value of only $16M. We believe this severely undervalues the company’s product pipeline and commercial portfolio.”
“Currently, the company has Zoptarelin doxorubicin in a Phase 3 study, Macrilen about to enter pivotal studies in 2H15, and two marketed products from co-promotion agreements. Furthermore, management has continued to deliver on their growth strategy and is planning to add more products to their nascent commercial portfolio in 2015. We continue to rate the shares of Æterna Zentaris as a Buy and view the current weakness as a buying opportunity.”, the analyst added.
Sentiment: Strong Buy