J.P. Morgan analyst Whitney Ijem came out today with a brief commentary on Keryx Biopharmaceuticals (NASDA:KERX), after the company announced this morning that it is raising $125 million via private placement of convertible notes, and implementing plans to reduce costs. The analyst rates Keryx shares an Overweight, with a price target of $16, which represents a potential upside of 302% from where the stock is currently trading.
Ijem noted, “It (the raising) reduces the financing overhang in the near term, and the company believes the pro-forma cash position will take the franchise to cash flow positive (which clearly assumes a meaningful change in the trajectory of the launch). As KERX works to bring down cash operating expenses (guided to $87-92M in 2016 excluding COGS), it is still hiring the additional 30 sales reps as announced on the 2Q call. We got a chance to speak with management who underscored that they will continue to invest in the right areas to support the Auryxia launch.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Whitney Ijem has a total average return of -11.6% and a 50.0% success rate. Ijem has a 1.9% average return when recommending KERX, and is ranked #2889 out of 3773 analysts.
Out of the 8 analysts polled by TipRanks, 3 rate Keryx Biopharmaceuticals stock a Buy, 4 rate the stock a Hold and 1 recommends a Sell. With a return potential of 138.10%, the stock’s consensus target price stands at $9.50