4 Hot Analyst Reads For Friday, August 3rd

Bret Jensen

Seize the moment. Remember all those women on the 'Titanic' who waved off the dessert cart.” ― Erma Bombeck

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Here are four small biotech stocks garnering new analyst commentary just before the bell in the last trading session of the week.

H.C. Wainwright reissues its Buy rating and $14 price target on T2 Biosystems (TTOO) after that small cap concern reported solid second quarter results after the bell Thursday. Here is the commentary from Wainwright's call.

“Valuation and risks. Our price target is derived from a market value of the firm at $643M, which includes a discounted cash flow analysis based asset value of $685M for T2Dx and test panels, with a 15% discount rate and 0% terminal growth rate, excluding $42M debt and assuming 46M shares outstanding at the end of 2Q19. Investment risks include: (1) failure of to achieve commercial success due to market size, penetration rate, and/or competition; and (2) dilution risk. T2 Biosystems, Inc.”

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We concur with that analyst's optimism. The FDA recently approved a new panel for T2 which is a game-changer in regards to hugely reducing the amount of time it takes to detect sepsis from days to hours.

Cytosorbents (CTSO) seeing some positive analyst action this morning from analysts after posting its own second quarter earnings report yesterday. Both Maxim Group ($18 price target) and Cowen & Co. ($15 price target) are reiterating Buy ratings on CTSO before the bell today. Here is the color from Maxim's reiteration

“Cytosorbents reported another quarter of growth with Cytosorb revenues of $5.24M, up sequentially from $4.4M—the 24th consecutive quarter of y/y quarterly growth. The company reported a net loss of $5.8M and ended the period with $25.3M in cash.”

Cantor Fitzgerald is reissuing its Neutral rating on AMAG Pharmaceuticals (AMAG) this Friday despite raising its price target a buck to $18 per share after the company posted solid second quarter results yesterday. Here is Cantor's current view on the company

"We reiterate the Neutral rating and adjust our PT to $18 (from $17) for AMAG stock. With the commercial potential of Intrarosa still unproven and the approvability of bremelanotide unknown, we believe investors will view the Makena franchise as the most significant supporter of share price value, particularly now that the CBR business is being divested. We suppose a bullish outlook could prevail over the near- to intermediate-term if Makena holds its own and no evidence emerges that Intrarosa or bremelanotide could disappoint expectations. We believe that the set up for 2019 has to be decidedly positive for the stock to perform well over the next 12-18 months absent, of course, transformational business activities.”

Finally, Needham is upgradingPacira Pharmaceuticals (PCRX) this morning from a Hold to a Buy with a $54 price target. Here is the synopsis or Needham's call

"Pacira saw a strong" Q2 performance of Exparel, where sales growth is accelerating while the company engages more of the anesthesiologist community. Belanger says the company's "fortunes began to change in April with the unexpected approval of the nerve block label. Last week's CMS proposal to unbundle the drug from ASC center surgeries may turn into another "significant" growth catalyst starting next year."

And those are four small cap concerns seeing recent analyst activity before the market opens this Wednesday. Happy Hunting.

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Hot Analyst Reads