Brean Capital analyst Difei Yang was out pounding the table on Zogenix, Inc. (NASDAQ:ZGNX) Wednesday, reiterating a Buy rating and price target of $2.50, which represents a potential upside of 82% from where the stock is currently trading.
Yang noted, “Zogenix shares slid roughly 20% during the past three trading sessions. We see no rationale that supports the price movement from a fundamental standpoint. The following actions by the company are part of what we refer to as repositioning Zogenix to its core competency, i.e. R&D, and we view them as incrementally positive. It is a necessary step towards re-building the company. These activities include : 1) Dr. Stephen Farr, current president and co-founder of the company stepping in as the CEO to lead the next phase of the development; 2) a proposed 1 for 8 reverse stock split; and 3) completion of the Zohydro ER sale. Our thesis did not change; we believe that Zogenix is an undervalued orphan drug company that has a low risk development compound ZX008.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a total average return of 19.2% and a 68.4% success rate. Yang has a 20.1% average return when recommending ZGNX, and is ranked #385 out of 3581 analysts.