Omeros Corporation (NASDAQ:OMER) shares tumbled nearly 12% today, after the company announced a $40-million underwritten public offering of its common stock at a price of $11.50 per share, ~11% discounts to yesterday’s closing price of $12.87.
In reaction, Wedbush analyst Liana Moussatos reduced her price target for the stock from $62 to $56, while reiterating an Outperform rating. The new price target implies an upside of 392.5% from current levels.
Moussatos noted, “We have adjusted our model for additional share count and cash. By including the additional ~3.48 million shares from the recent financing, the dilution slightly impacted our Q3 2016 EPS (loss), as well as full-year 2016 and years going forward. The additional shares also reduced our price target by ~$6. We project this financing to cover the continued launch of OMIDRIA, initiation of the pivotal Phase 3 trial for OMS721 in aHUS, data releases from both Phase 2 trials for OMS721 in TMA and corticosteroid-dependent renal diseases. Additionally, depending on OMIDRIA revenues and operational expenses over the next 12 months, this financing could provide runway until the company is profitable, which we project could occur in 2017.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a yearly average return of 7.8% and a 38% success rate. Moussatos has a 13.4% average return when recommending OMER, and is ranked #423 out of 4110 analysts.
As of this writing, all the 6 analysts polled by TipRanks rate Omeros stock a Buy. With a return potential of 259%, the stock’s consensus target price stands at $40.83.