B. Riley FBR: 3 Reasons To Buy Alimera Sciences
Nano-cap pharma company Alimera Sciences Inc (NASDAQ: ALIM) could nearly triple in value for three key reasons, according to B. Riley FBR.
The Analyst
Analyst Andrew D'Silva initiated coverage of Alimera Sciences with a Buy rating and $2.75 price target.
The Thesis
Alimera is a leader in sustained-release ophthalmic technologies and should be bought by investors for three reasons, D'Silva said in the initiation note. (See the analyst's track record here.)
D'Silva named the following as reasons for the bullish stance on Alimera:
The company has shown consistent growth with its lead offeringm, Iluvien for the treatment of diabetic macular edema, since 2014. The therapy is a sustained release micro insert that can last for three years, so early adopters are now expected to come back for a second treatment cycle along with new patients receiving their initial treatment, the analyst said.
Alimera submitted a Type 2 variation for Iluvien in Europe for uveitis, and approval is expected to come in the first half of 2019, D'Silva said. The data shown so far in pivotal studies is supportive of the therapy, despite uveitis being an orphan disease that affects around 200,000 patients across Europe.
Revenue growth in 2018 should come in at a low-double digit rate, but is likely to ramp higher in 2019 and 2020, at which point Alimera should report a positive EPS, the analyst said.
Volatility in the stock could be seen over the coming years, but the risk-reward profile implies upside of nearly three times from current levels, which represents a significant opportunity for investors, according to B. Riley FBR.
Price Action
Alimera Sciences shares were trading up 1.75 percent at the time of publication Friday afternoon.
Related Links:
Benzinga's Daily Biotech Pulse: Gemphire On Fire, Acceleron-Celgene Taste Success, AbbVie Ditches Galapagos
Market Sentiment Upbeat After Largely Positive Bank Stress Test Results
Latest Ratings for ALIM
Jun 2018 | B. Riley FBR | Initiates Coverage On | Buy | |
Apr 2017 | Rodman & Renshaw | Initiates Coverage On | Buy | |
Sep 2016 | Cowen & Co. | Upgrades | Market Perform | Outperform |
View More Analyst Ratings for ALIM
View the Latest Analyst Ratings
See more from Benzinga
Apogee Enterprises Shares Are Living Up To Their Name, DA Davidson Says In Downgrade
Tastytrade Raises M In New Funding, Wants To Help 'Change The World' Of Investing
Barrington Explains Why A Neutral Stance On Sirius XM Was Wrong
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.