Oppenheimer analyst Ling Wang initiated Outperform rating on Rockwell Medical (NASDAQ:RMTI) with a $24 price target, which represents a potential upside of 152% from where the stock is currently trading.
Wang noted, “We expect RMTI shares to have significant upside to be driven by the potential regulatory approval of Triferic™ as iron replacement therapy for chronic kidney disease (CKD) patients on hemodialysis in 1Q15, possible market launch of both Triferic™ and Calcitriol in 1H15 and significant top and bottom line growth (we project RMTI reaching profitability in 2015 assuming Triferic™ approval).”
The analyst explained his new price target saying, “We derive our $24 price target by summing up the three components: the risk-adjusted NPV of Triferic at ~$903M (~$18/share), the rNPV of Calcitriol at ~$193M (~$4/share), and the base business of $100M (~2/share).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ling Wang has a total average return of -9.8% and a 26.9% success rate. Wang has a -12.4% average return when recommending RMTI, and is ranked #3239 out of 3429 analysts.