4 Hot Analyst Reads For Wednesday, July 11th

Bret Jensen

What do we say to the Lord of Death?' 'Not today.” ― George R.R. Martin, A Game of Thrones

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Here are four small cap stocks seeing notable analyst commentary just before we open trading today.

Maxim Group is out this morning reissuing a Buy rating and $6 price target on small cap antifungal concern SCYNEXIS (SCYX) with the following commentary after the company decided on the dose regimen for a critical upcoming late stage trial.

"Scynexis announced positive data from the P2b DOVE study evaluating anti-fungal candidate SCY-078 vs. fluconazole (“Flu” standard of care) in moderate-severe vulvovaginal candidiasis (VVC), demonstrating comparable or enhanced efficacy across multiple measures. Key takeaways from the data (600mg dose group vs. Flu group shown): ○ Dosing: Lowest dose of 600mg (N=27) had best combination of efficacy and tolerability, will take into P3 studies. ○ Test of Cure (TOC): Comparable to fluconazole, 52% vs. 58% at day 10, improved to 70% at day 25 vs. 50% for Flu. ○ Sign and Symptoms (S&S), supports TOC data. At day 10 SCY-078 was 1.0 vs. Flu at 1.8, improved to 0.4 at day 25 where Flu worsened to 2.6. ○ Mycological eradication: At day 10, SCY-078 was 63% vs. 63% for Flu and at day 25 was 48% vs. 38%. ○ P3 studies next, 4Q18: Two studies, N=300 each, 600mg SCY-078 vs. placebo.”

H.C. Wainwright also reiterated its Buy rating and $5 price target on SCYX today before the bell.

That same analyst at Wainwright is also bullish on another small cap biotech stock trading under $2.00 a share this morning as he reissues his Buy rating and $4 price target on Idera Pharmaceuticals (IDRA). He provides the following analysis behind his valuation

“We are maintaining our Buy rating of IDRA and our 12-month price target of $4.00. We derive our price target based on a risk-adjusted net present value analysis of projected product revenues through 2027 assuming a 12% discount rate and 3% terminal growth rate. We derive an rNPV of $985M and upon inclusion of $113M in cash and cash equivalents to arrive at a 12-month price target of $4.21 per diluted share, which we round to $4.00. (1) clinical; (2) partnership; (3) commercial; (4) financial; and (5) intellectual property.”

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Piper Jaffray believes the recent weakness in mid-cap oncology concern Exelixis (EXEL) is a 'buying opportunity' as he reiterates this name as an Outperform rating and $29 price target. Based on a recent survey of oncologists, Jaffray's analsyt believes the company's primary oncology drug Cabometyx will rack up just under $540 million in sales in FY2018. The compound delivered just under $350 million in revenues in FY2017 in comparison.

JMP Securities [reissues ](Pacritinib and the "tremendous opportunity" for it in myelofibrosis Read more at: https://thefly.com/landingPageNews.php?id=2755804)its Buy rating and $8 price target on CTI BioPharma (CTIC) even though the company recently announced that a Phase 3 study of its compound pacritinib in B-cell non-Hodgkin lymphoma failed to meet its primary endpoint. JMP's analyst did not assign any value to this indication in Europe but believes the compound has a 'tremendous opportunity' in myelofibrosis and that remains the central foundation of his valuation.

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

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Hot Analyst Reads