Guggenheim analyst Louise Chen was out with a research note on shares of Aralez Pharmaceuticals Inc (NASDAQ:ARLZ), reiterating a Buy rating and price target of $12, after the drug maker announced that its lead drug, Yosprala (aspirin/omeprazole delayed release tablets), was approved by the FDA. Aralez shares are currently trading at $5.69, down $0.05 or -0.87%.
Chen commented, “Approval of Yosprala and the recent acquisition of Zontivity underscore our positive investment thesis. We continue to believe that there is upside to consensus expectations and this could come from: 1) ARLZ’s approved products; 2) The company’s pipeline; as well as 3) Business develop, which ARLZ has publicly stated will be focused on CV and Pain. We believe Yosprala could reach sales of $200MM+ by ’22. Additionally, we think ARLZ will be a successful consolidator of assets with its strong balance sheet, experienced management team, and low tax rate.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Louise Chen has a yearly average return of -10.6% and a 40% success rate. Chen has a 26.4% average return when recommending ARLZ, and is ranked #3946 out of 4158 analysts.
As of this writing, all the 3 analysts polled by TipRanks rate Aralez Pharmaceuticals stock a Buy. With a return potential of 75%, the stock’s consensus target price stands at $10.