Late this past Friday, Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) came in with numbers for its second quarter, posting a loss of ($0.50). Cantor analyst Chiara Russo projected just above with a loss of ($0.52). On the back of the biotech firm’s results, Russo reiterates a Buy rating on shares of TNXP with a $5.00 price target, which represents a 125% increase from where the stock is currently trading.

For Russo, the main catalyst of value remains the read-out of AFFIRM’s fibromyalgia trial Phase 3 data, which according to TNXP management, should be released sometime in September. The AFFIRM clinical trial will evaluate the efficacy of TNX-102 SL, a chronic bedtime therapy pipeline drug intended to treat disturbed sleep in patients suffering from fibromyalgia.

Russo asserts, “We believe that a positive read-out would trigger increased share value as investors assume read through to the second Phase 3 trial which initiated late July.” Though there lies upside potential, Russo also sees risk with remaining funding overhand that could offset the positive momentum.

Ultimately, Russo believes, “We like the continuity between the two pivotal trails as investors will most likely extrapolate that a good result in one allows for read-through to the other. We are confident on the Phase 3 readout as the primary endpoint is a 30% responder analysis at 12 weeks, an endpoint that was statistically significant in the Phase 2b.” The analyst believes cash flow will be enough to sustain Tonix through its second Phase 3 fibromyalgia study, expected to initiate by the first quarter of 2017. However, the funding overhang lies with its second indication of PTSD, where there exists a significant gap.

According to TipRanks, three-star analyst Chiara Russo is ranked #1,959 out of 4,105 analysts. Russo has a steady success rate of 56%, yielding 0.8% in her annual returns. However, when recommending TNXP, Russo loses 47.2% in average profits on the stock.

TipRanks analytics exhibit TNXP as a Strong Buy. 100% of analysts polled in the last 3 months for the stock rate a Buy. The consensus price target stands at $9.00, marking a nearly 302% upside from where the shares last closed.

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