In a report that reiterated familiar growth strategies, MLV & Co. analyst Vernon Bernardino upgraded Coronado Biosciences Inc (NASDAQ:CNDO) to a Buy from a Hold rating with a price target of $7, up from $2, which implies an upside of 86.7% from current levels. Bernardino drew attention to the biopharmaceutical company's growth strategy, which he believes is undervalued by investors.
Coronado's growth strategy includes leveraging "management's expertise in acquiring or in-licensing rights to innovative products and technologies." The analyst finds near-term upside in the advancement of IV tramadol; a moderate pain reliever. Bernardino offered a conservative estimate that the generic drug will attain 8% market share.
Bernardino sees long-term potential in the "non-dilutive and relatively small cash investments" CNDO made on high-value technologies, such as checkpoint inhibitors and CAR-T immunotherapies. He notes that a moderate investment of "$15-$20MM spread over 3-4 years, could result in the discovery of highly effective, novel, multi-billion dollar therapies."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of -9.9% and a 37.0% success rate. Bernardino has a 0.0% average return when recommending CNDO, and is ranked #3462 out of 3562 analysts.