Roth Capital analyst Elemer Piros initiated coverage on Plasmatech Biopharmaceuticals Inc (NASDAQ:PTBI) after looking at the company’s world-class gene and protein therapeutics portfolio for rare genetic disorders. The analyst rated the stock a Buy, with a price target of $16.00. Shares of PTBI are currently trading at $7.69, up $0.62, or 8.77%.
Piros said, “We currently ascribe a 35% probability of success for the treatment of Sanfilippo syndrome. The probabilityadjusted (35%), fully taxed (35%) NPV (15% discount rate) of future cash flows is over $300MM ($11/share), in our calculation. By adding $150MM ($5/share) technology value embedded in license fees and royalties from legacy products, the company’s plasma fractionation business and the Batten disease program, we arrive at a value of $485MM ($16/share).”
“Factors that could prevent shares of PlasmaTech from achieving our price target include: poor trial outcome and adverse market conditions for stocks in the biotechnology sector. While the company has $30MM on the balance sheet (sufficient to fund 2-3 years of operations), additional capital may not be available under favorable terms, or at all.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Elemer Piros has a total average return of -3.0% and a 40.0% success rate. Piros is ranked #2949 out of 3621 analysts.
With a return potential of 95.1%, the stock’s consensus target price stands at $15.