In a research report released Friday, FBR analyst Edward White initiated coverage on shares of Synthetic Biologics Inc (NYSEMKT:SYN), with an Outperform rating and a $10 price target, which represents a potential upside of 485% from where the stock is currently trading.
White wrote, “We are initiating coverage of Synthetic Biologics, Inc. with an Outperform rating based on our outlook for its SYN-010 and SYN-004 product candidates. We believe that Synthetic’s focus on protecting the balance of the gut microbiome could have applicability outside of the treatment of IBS-C and the prevention of CDI, for which SYN-010 and SYN-004 are respectively in clinical development.”
The analyst continued, “Both of Synthetic’s lead product candidates are in Phase II development, and both are targeting the protection of the gut microbiome from pathogens causing disease. Both products also address significant unmet medical needs that we believe could represent multi-billion-dollar markets.”
“Our $10 price target represents a risk-adjusted value for the company’s SYN-010 product candidate for the treatment of IBS-C and SYN-004 product candidate for the prevention of CDI, which may change to the prevention of antibiotic-associated diarrhea. We also include $0.33 per share in cash and $0.10 per share for the company’s early-stage pipeline,” White added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Edward White has a yearly average return of -25.3% and a 11.5% success rate. White is ranked #3570 out of 3675 analysts.
Out of the 6 analysts polled by TipRanks, 5 rate Synthetic Biologics stock a Buy, while 1 rates the stock a Hold. With a return potential of 262.6%, the stock’s consensus target price stands at $6.20.