H.C. Wainwright Pounds the Table on AEterna Zentaris Inc. (USA)


H.C. Wainwright analyst Swayampakula Ramakanth was out pounding the table on AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) Thursday, reiterating a Buy rating and price target of $1.25, which represents a potential upside of about 315% from where the stock is currently trading.

Ramakanth wrote, “Over the last week, shares of Æterna Zentaris have been under pressure and the company is currently trading at a market cap of $28M, barely half of its reported 1Q15 cash of $53M. At an estimated fully-diluted share count of 215M shares (with all warrants exercised) and the current price of $0.32 per share, this translates to an enterprise value of only $16M. We believe this severely undervalues the company’s product pipeline and commercial portfolio.”

“Currently, the company has Zoptarelin doxorubicin in a Phase 3 study, Macrilen about to enter pivotal studies in 2H15, and two marketed products from co-promotion agreements. Furthermore, management has continued to deliver on their growth strategy and is planning to add more products to their nascent commercial portfolio in 2015. We continue to rate the shares of Æterna Zentaris as a Buy and view the current weakness as a buying opportunity.”, the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Swayampakula Ramakanth has a total average return of 8.4% and a 38.2% success rate. Ramakanth has an -46.0% average return when recommending AEZS, and is ranked #1167 out of 3607 analysts.

AEZS Chart

  • Gary Mohilner

    All that’s said here is fine, but the Analyst should also reveal that the company has been authorized to do a reverse split, and I’ve little doubt they’ll do it. In fact, I believe if the subject of a reverse split had never been suggested the share price would be double or more what it is today. Had they announced that they intended to go for the 6 month extension from the Nasdaq, and believed that over $1 would occur in the needed period I believe the share price could be very close at this time.

    The reality is that in driving the price down they’ve justified going for the maximum split, rather than the minimum. I believe an Analyst should reveal the bad as well as the good.

    Gary

  • Matt W

    Three and a half months later and the stock has gone from .32 to .08..Nice pick genius!!