In a research report issued today, Wedbush analyst Zarak Khurshid reiterated an Outperform rating on shares of OvaScience Inc (NASDAQ:OVAS) with a $46 price target, which represents a potential upside of 175% from where the stock is currently trading. However, the analyst removed OVAS from the Wedbush Best Ideas list and gave a cautious commentary on the near-term outlook.
Khurshid wrote, “Despite encouraging patient experience data from Canadian and UAE customers in May and June 2015 and positive indicators in the last few weeks, we have been surprised by the magnitude of the sell-off. The consistent decline in share price despite the announcement for planned adoption by IVI Group (the largest IVF clinic network in the world), national insurance coverage news in UAE and publication of an encouraging egg allocation study results over the last month suggests to us that the threshold for investors is higher than our previous expectations.”
Furthermore, “While we view the patient experience data to date and the egg allocation study as compelling we believe there is a large group of investors that are unconvinced and who will remain unconvinced in the absence of blinded controlled studies. As a result, we believe the driver of near term sentiment will be tangible business progress measured in revenue.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Zarak Khurshid has a total average return of -2.5% and a 54.9% success rate. Khurshid has a -16.9% average return when recommending OVAS, and is ranked #3022 out of 3747 analysts.