Canaccord analyst Neil Maruoka weighed in with a few insights on AEterna Zentaris Inc. (USA)(NASDAQ:AEZS), following the completion of share consolidation at a conversion ratio of 100-to-1, which became effective on November 20. The analyst reiterated a Buy rating on the stock, while adjusting the price target to $13 (from $0.10), which represents a potential upside of 69% from where the stock is currently trading.
Maruoka noted, “Following the 100-to-1 share consolidation, we have revised our model for the resulting number of common shares outstanding and updated our dilution analysis. We have also rolled our valuation model year forward to 2016. Based on these changes, we arrive at a revised target price of $13.00.”
In explaining his positive Buy rating Maruoka stated, “The agreement to exercise the majority of the Series B warrants substantially removes the single largest overhang for the stock, allowing us to properly value the company’s clinical and commercial prospects.” The analyst continued, “The completion of the Phase III study of Zoptrex in endometrial cancer is expected within the next 12 months, and top-line data shortly thereafter. We believe this will be the major catalyst for the stock next year.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Neil Maruoka has a total average return of -24.6% and a 27.3% success rate. Maruoka has a 14.2% average return when recommending AEZS, and is ranked #3610 out of 3641 analysts.