In a research report published Friday, Maxim Group analyst Jason Kolbert reiterated a Buy rating on shares of AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) with a $2.00 price target, following the company’s third-quarter financial results and update on its development program.
Kolbert wrote, “AEterna reported 3Q with a net loss of $15M — $8M were due to onetime financing costs, so $7M were operational costs. However, what’s more important is that management has gone to great lengths to improve the company’s capital structure, which has been suppressing valuation of a company, even with commercial products and two phase III assets in Macrilen and ZoptEC.”
Furthermore, “The exercise of series B warrants, which were near 27M in 3Q, were keeping the company’s valuation under pressure. Management was able to successfully negotiate with series B holders and effectively reduced the 27M warrants to only 800K. AEterna will look to consolidate shares and raise capital under favorable terms to continue driving pipeline and commercial assets.”
Bottom line: “We now can focus on fundamentals ZoptEC and Macrilen as the next drivers.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of -14.9% and a 28.9% success rate. Kolbert has a -72.8% average return when recommending AEZS, and is ranked #3823 out of 3827 analysts.