In a research report published Tuesday, Chardan analyst Gbola Amusa upgraded shares of Avalanche Biotechnologies Inc (NASDAQ:AAVL) from Sell to Neutral rating, as his price target of $20 is now implying an upside of 22% from current levels.
Amusa said, “As Avalanche traded 25% below our $20 price target, we feel that recent share price movements may have been overdone. We do not see much scope for Avalanche to trade well below recent prices ($15-$16), given: 1) the $11.50 cash per share position, 2) our belief in the importance of gene therapy, per our prior research, and 3) the likelihood that M&A interest in Avalanche could pick up given the cash position and given the interest already shown by adept bigger-cap players in the space (e.g. unrated Bristol-Myers Squibb’s interest in Buy-rated uniQure).”
Bottom line: “With our view on the gene therapy space and on the lower likelihood of Avalanche downside from here, we now upgrade to Neutral. Although upside from here to our $20 price target would normally qualify Avalanche for a Buy rating, we look for further visibility and/or confirmation on AVA-101 near-term catalysts that could take the stock to $20. We shall re-assess our rating on further visibility.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gbola Amusa has a total average return of 15.0% and a 71.1% success rate. Amusa has a 4.1% average return when recommending AAVL, and is ranked #555 out of 3640 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Avalanche Biotechnologies Inc stock a Buy, while 1 rates the stock a Hold. With a return potential of 191.7%, the stock’s consensus target price stands at $47.67.