4 Hot Analyst Reads For Friday, August 10th

Bret Jensen

"The most part of all princes have more delight in warlike manners and feats of chivalry than in the good feats of peace.” ― Thomas More

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Here are four small biotech stocks garnering new analyst commentary just before the bell this Friday

Maxim Group reiterates their Buy rating and $8 price target on SCYNEXIS (SCYX) this morning after that company reported second quarter results. Here is the color from that early morning call.

“Scynexis reported 2Q18 with operating expenses of $7.7M and ended the period with $55M in cash, runway at the current burn rate into late 2019.”

Biospefics Technologies (BSTC) sees its Buy rating maintained and reissued at H.C. Wainwright this morning. Wainwright is also 'specific' why it has a $65 price target on the stock at the current time.

Our price target is derived from a market value of the firm at $463M, which includes a discounted cash flow based asset value of $386M for Xiaflex (or 15% discount rate and 2% terminal growth rate, and projected cash position. Risks include: (1) failure of Xiaflex in future trials; (2) failure of Xiaflex to secure regulatory approval for more indications; and (3) failure of Xiaflex to achieve commercial success due to lower-than-expected market size and/or penetration rates, and/or greater competition.”

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Oppenheimer also maintains its Buy rating and $10 price target on Sorrento Therapeutics (SRNE) after that small cap disclosed second quarter results. Oppenheimer has the following to say about the company's prospects

“Thursday, Sorrento reported 2Q results and we discussed recent progress with management. While maintaining a low profile in recent months, Sorrento is making progress in several key programs. Enrollment is under way in multiple trials, including a Phase 1 trial of resiniferatoxin (RTX) for intractable cancer pain and another Phase 1 study of the company’s anti-CD38 CAR-T for multiple myeloma (MM). Additionally, we believe initiation of a trial of RTX in osteoarthritis (OA) remains on schedule. Early data from these trials are expected to materialize in 2H18/1H19. Cash remains an overhang which management aims to address with minimally-dilutive financings, partnerships, and revenues from commercial launch of ZTlido in 4Q. A Hong Kong IPO for Sorrento’s subsidiary TNK is possible in 1H19. $10 PT.”

Finally, Piper Jaffray is downgradingEndologix (ELGX) to Neutral from Overweight this morning. Jaffray is also lowering its price target on the stock to $4.75 from $7.00 previously. Jaffray is stepping to the 'sidelines' as management reorganizes its structure which includes 'meaningfully reducing revenue guidance' as the company revampsthe business

And those are four small cap concerns seeing recent analyst activity before the market opens for the last trading session of the week. Happy Hunting. .


Hot Analyst Reads