In a research report issued Tuesday, Leerink Swann analyst Paul Matteis initiated coverage on shares of Cempra Inc (NASDAQ:CEMP), with a Market Perform rating and price target of $31, which represents a potential upside of 22% from where the stock is currently trading.
Matteis commented: “While we are confident in the potential of lead product Solithromycin (Community Acquired Bacterial Pneumonia [CABP]), we believe CEMP shares for the most part price-in clinical and commercial success ahead of a second Phase III readout by YE15 and launch in 2H16/1H17. Lead product Solithromycin is a next-generation macrolide (first-gen fluoroketolide) that we believe is poised to address growing resistance concerns in pneumonia. However, consensus estimates assume superior uptake to recently launched antibiotics, whereas with no brands currently promoted in CABP we believe Solithromycin usage will accrue linearly as a new marketing voice reaches the large outpatient prescriber base in the US.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Paul Matteis has a total average return of -33.4% and a 7.7% success rate. Matteis is ranked #3721 out of 3775 analysts.
As of this writing, all the 7 analysts polled by TipRanks rate Cempra stock a Buy. With a return potential of 71.5%, the stock’s consensus target price stands at $43.57.