Maxim Sees Compelling Value In AEterna Zentaris Inc. (AEZS)


Maxim Group analyst Jason Kolbert came out with a research report on AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), after visiting with management in South Carolina and reviewing the company fundamentals. The analyst rates Aeterna Zentaris shares a Buy with a price target of $2.00, which represents a potential upside of 608% from where the stock is currently trading.

Kolbert wrote, “We left impressed that there is real and compelling value ahead in this company across multiple programs. We spent a good portion of our day focused on Macrilen. We conclude that Macrilen works, is a viable paradigm shift in the Adult Growth Hormone Deficiency (AGHD) marketplace and with even modest success, justifies the company’s current valuation. With the current test, insulin tolerance is long and burdensome vs. Macrilen, so we believe Macrilen could expand the market.”

Bottom line: “We see the current Macrilen trial as low risk, high reward. Other near-term catalysts should support and drive valuation.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 2.7% and a 42.0% success rate. Kolbert has a -59.5% average return when recommending AEZS, and is ranked #1223 out of 3624 analysts.

Out of the 4 analysts polled by TipRanks, 3 rate Aeterna Zentaris stock a Buy, while 1 rates the stock a Hold. With a return potential of 320.4%, the stock’s consensus target price stands at $1.19.

  • Gary Mohilner

    While I agree with your opinion, just in fairness to investors who’re looking at your advice, you should discuss the fact that the Nasdaq could either delist the company, give a 6 month extension, or force the company into an authorized reverse split at a range of 1 for 4 to 1 for 8 to meet the $1 minimum share price.

    I believe the real value will come from the Phase III Trial in AEZS-108 which may concluded later this year, but certainly should by next year. This drug has blockbuster potential, while the other is a niche product which may be approved in Europe, etc before it can be approved here in the U.S. AEZS-108 on the other hand may be approved by the FDA after it’s trial concludes and a new NDA is prepared and reviewed by the FDA.

    In short, AEZS-108 could have U.S. approval before AEZS-130 does, and it would be worth far more.

    Gary