NEW YORK (TheStreet) -- Wedbush added Endocyte (ECYT) to its "Best Ideas List" and nearly trippled its price target to $65.00 from $23.00 while maintaining an "outperform" rating for the stock in a note published Tuesday.
Wedbush analysts noted that the positive rating was because the EU Committee For Medicinal Products For Human Use (CHMP) gave Endocyte's cancer therapeutic drug Vintafolide its approval. "The EU CHMP announced a positive recommendation for the approval of VYNFINIT (vintafolide) and its companion imaging test FOLCEPRI (etarfolatide) in the platinum-resistant ovarian cancer setting," the note said.
The analysts also noted that Endocyte expects to benefit from greater sales in the EU thanks to the EU CHMP's recommendation: "ECYT commented that by year end they expect reimbursement to be in place for 40% of the potential patient population for both VYNFINIT and the companion imaging test. We put the market opportunity for VYNFINIT at 16,400 patients per year in the EU and model peak sales at $430M."
Shares of Endocyte closed at $27.22 Monday and are up 4.83% to $28.53 in trading Tuesday.
Separately, TheStreet Ratings team rates ENDOCYTE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENDOCYTE INC (ECYT) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity."