In a research report issued today, RBC Capital analyst Adnan Butt initiated coverage on shares of Synthetic Biologics Inc (NYSEMKT:SYN), with an Outperform rating and an $8 price target, which represents a potential upside of 260% from where the stock is currently trading.
Butt wrote, “We believe SYN shares offer the potential for significant upside given multiple shots on goals with at least two clinical-stage candidates addressing high unmet needs that leverage the microbiome,” said Butt. “SYN-004 is in Phase II studies for the prevention of C. Difficile infection (CDI) with existing proof-of concept data in earlier-stage and first-generation compound available.”
Furthermore, “SYN-010 is in Phase II studies for the treatment of irritable bowel syndrome with constipation (IBS-C) with promising proof-of-principle data. Both SYN-004 and SYN 010 could achieve blockbuster status in their respective indications. Both also have the potential to expand to additional indications. More than 24M patients in the US receive intravenous (IV) antibiotics, including 14M on beta-lactam inhibitors, and more than 1M patients are diagnosed with CDI. Approximately 17M patients have IBS, and more than 3M have IBS-C in the US alone. We forecast peak sales of SYN-004 for CDI prevention and SYN-010 for IBS-C treatment at $1B+ each.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Adnan Butt has a total average return of -7.2% and a 44.6% success rate. Butt is ranked #3556 out of 3775 analysts.
Out of the 5 analysts polled by TipRanks, 4 rate Synthetic Biologics stock a Buy, while 1 rates the stock a Hold. With a return potential of 215.32%, the stock’s consensus target price stands at $7.