In a research report released today, Maxim analyst Jason Kolbert reiterated a Buy rating on shares of AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), while introducing a new price target of $11.00 (from $200), after updating the model for the new capital structure and share count and adjusting assumptions for funding (capital raises). The new price target implies an upside of 123% from current levels.
Kolbert noted, “Management announced the clean-up of the company’s capital structure, with the majority of outstanding warrants (multiple traunches) now eliminated. With a reverse split now effective, the company has approximately 6.6M shares outstanding. We do not have the final numbers yet, but the overhang from the warrants has for the most part been eliminated.”
The analyst continued, “Last week, management announced that the first patient has been enrolled for the confirmatory Phase III clinical study to demonstrate the efficacy of Macrilen for adult growth hormone deficiency (AGHD). This is a big deal, as it means the trial is now running. We believe Macrilen is a viable therapeutic/ diagnostic that will be used in the AGHD marketplace and potentially in traumatic brain injury.”
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 -14.6% and a 29.4% success rate. Kolbert has a -76.5% average return when recommending AEZS, and is ranked #3852 out of 3858 analysts.