On August 9th, AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) posted second-quarter results and provided a clinical update. Though Canaccord analyst Neil Maruoka notes that the results fell below his expectations on a lighter top line, with eyes peeled to the future with clinical data imminent next year, he reiterates a Speculative Buy rating on shares of AEZS with a $9.00 price target, which represents just under a 146% increase from where the shares last closed.

The biotech firm came in with revenue for the quarter at $0.1 million, falling under Maruouka’s forecast of $0.3 million. Maruouka attributes this to seasonality of Saizen, the firm’s pipeline growth hormone replacement therapy drug to help the body when it fails to produce enough of the hormone on its own. Saizen. As a result, the amount of new patients starting the drug declined 47% from the past quarter.

AEterna reported the equivalent of $26.2 million in cash flow at the quarter’s close, which the analyst contends will be sufficient to fund operations beyond the next 10 months through its Phase III clinical trial progressions of endometrial cancer-treating drug Zoptrex and adult human growth hormone deficiency drug Macrilen.

Maruoka concludes, “Although timelines have shifted, our focus remains on the clinical data for Zoptrex, which is now expected in Q1 2017. We view this drug to be the key value-driver for AEterna Zentaris, representing the company’s most significant revenue opportunity going forward.”

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As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Neil Maruouka is ranked #4,025 out of 4,122 analysts. Maruoka has a 13% success rate and faces a loss of 38.9% in his annual returns. When recommending AEZS, Maruouka loses 24.2% in average profits on the stock.

TipRanks analytics demonstrate AEZS as a Buy. 100% of analysts polled in the last 3 months rate a Buy on AEZS. The consensus price target stands at $11.00, marking a 198% upside from where the stock is currently trading.

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