In a research report released Thursday, Needham analyst Alan Carr reiterated a Buy rating on Cempra Inc (NASDAQ:CEMP) and raised the price target to $48 (from $42), which implies an upside of 16.5% from current levels. The report follows comes after the company reported second-quarter results and hosted a conference call last night to report updates of its lead candidates. Cempra shares are down 6.24% to $42.04 as of 1:13 p.m. EDT today.
Carr wrote, “The company completed enrollment of its second Phase 3 trial of solithromycin in CABP in early July 2015. We believe results may be announced as early as Oct 2015. We assume a favorable outcome based on positive results from the first Phase 3 CABP trial in Jan 2015. We reiterate BUY and are raising our target in anticipation of positive results this fall.”
“Cempra ended 2Q15 with $202.4M in cash, down from 209.1M in 1Q15. We believe this is sufficient into 2017. Mgmt reiterated that additional funds will be needed to support commercial launch of solithromycin.”, the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a total average return of 42.6% and a 76.5% success rate. Carr has a 38.0% average return when recommending CEMP, and is ranked #4 out of 3718 analysts.