Analysts Weigh In On Two Rising Stocks: Conatus Pharmaceuticals Inc (CNAT), Mobileye NV (MBLY)


Analysts weigh in on biotechnology company Conatus Pharmaceuticals Inc (NASDAQ:CNAT) and vision chip company Mobileye NV (NYSE:MBLY), as news of positive Phase II study of liver cirrhosis and strategic partnership with Volkswagen, respectively, sent shares of both companies soaring.

Conatus Pharmaceuticals Inc

Shares of Conatus Pharmaceuticals are rising nearly 20% after the company announced yesterday positive top-line results of the Phase II clinical trial of Emricasan for treatment of liver cirrhosis.

In reaction, Brean Capital analyst Difei Yang reiterated a Buy rating on Conatus, with a price target of $13, which represents a potential upside of 278% from where the stock is currently trading.

Yang noted, “We are highly encouraged by the data as it demonstrates potential efficacy of Emricasan vs. placebo for a subset of LC population, though the data at the current study remains inconclusive.”

“We believe that the subsequent readout on the three month open label study of the current Phase II trial during 2Q16 could serve as a catalyst that could drive near-term upside of the company,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a yearly average return of -5.6% and a 36.7% success rate. Yang has a -46.6% average return when recommending CNAT, and is ranked #3409 out of 3647 analysts.

Out of the 7 analysts polled by TipRanks, 6 rate Conatus Pharmaceuticals stock a Buy, while 1 rates the stock a Hold. With a return potential of 210%, the stock’s consensus target price stands at $10.67.

Mobileye NV

Mobileye shares are up 5.42% this morning after CEO Dr. Herbert Diess of Volkswagen AG announced that his company has signed a “Strategic Partnership” with Mobileye to use ADAS cameras on the road to support “real time mapping.”

Subsequently, Evercore ISI analyst Chris McNally reiterated a Buy rating on Mobileye, with a price target of $68, which represents a potential upside of 81% from where the stock is currently trading.

McNally commented, “While we view real time mapping (which we will define as using the precision of a camera to “live update” static GPS derived maps) as a small incremental positive (potential new revenue streams, stickier customers, more data, more refined algorithms, more moat/competitive advantage) the real takeaway is, that to achieve their real time mapping goal, VW needs a fleet of MBLY enabled mono vehicles.”

Out of the 5 analysts polled by TipRanks in the last 3 months, 4 rate Mobileye stock a Buy, while 1 rate the stock a Hold. With a return potential of nearly 72%, the stock’s consensus target price stands at $65.38.