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If there was a competition for the stock market’s most volatile stock, it’s likely the recent gyrations of Infinity Pharmaceuticals (INFI) will make it one of the front runners. The past week has seen huge swings in both directions, making it hard to know where the stock is heading next.
Although if you pose such a question to J.P. Morgan’s Anupam Rama, the analyst will have a firm opinion on the matter. And a positive one at that.
Rama recently upgraded INFI’s rating from Neutral (i.e. Hold) to Overweight (i.e. Buy), and stuck a $6 price target on the stock. As befitting a stock prone to big moves, Rama’s objective suggests upside potential of a strong 124%. (To watch Rama’s track record, click here)
Rama is the latest analyst on Wall Street singling out this name as one to watch after last week’s developments. Recall, Infinity announced clinical updates of its lead candidate eganelisib – presently in combination-based programs in urothelial cancer and triple negative breast cancer (TNBC).
The market’s initial reaction was downbeat, due to disappointing results from the breast cancer study. However, Street analysts cottoned on to the results of the phase 2 urothelial cancer tests, which showed the drug increased the survival rate of participants, indicating it has potential as a possible therapy. Rama certainly believes so and says the “totality of the eganelisib in 2L urothelial cancer is being underappreciated at current levels.”
“These data underscore the strong ORR / DCR / PFS trends observed at ASCO GU in February, particularly in PD-L1 low patients, and helps de-risk a potential phase 3 study in the population (status / timelines of registrational enabling study timelines anticipate by YE21),” the analyst went on to say. “From a modeling perspective, we currently only include PD-L1 low UC patients, given the totality of the data, and estimate WW peak sales in the ~$500-600M range.”
Based on the potential of eganelisib in UC alone, Rama thinks the shares are “undervalued,” and sees any extra “indication shots on goal as potential longer-term value drivers.”
All analysts who have recently posted INFI reviews are on the same page; the stock has a Strong Buy consensus rating based on a unanimous 6 Buys. There are plenty of gains left in store; according to the $7.75 average price target, shares will be changing hands for ~194% premium a year from now. (See INFI stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.