Wedbush’s healthcare analyst Liana Moussatos weighed in today with a favorable report on Omeros Corporation (NASDAQ:OMER), reiterating an Outperform rating and a $61 price target, which represents a potential upside of 257% from where the stock is currently trading. Moussatos believes that the recent weakness in Omeros shares is unwarranted, overdone, and has created a buying opportunity.
In her research report, Moussatos wrote, “Since the June 22nd close of $22.08, OMER has decreased daily to a $16.98 close on July 1 st (about -23%) and weakness continues intraday on July 2nd. On June 25th a negative article recommended selling OMER based on financial parameters which in our view are not appropriately applied to the development stage of Omeros. We consider these measures to be more appropriate for a mature, profitable company—not one which just launched its first drug. Typically, healthcare specialist investors do not use these measures to make investment decisions on earlier stage drug developers but gauge risk for clinical trial data releases, regulatory decisions and sales
Bottom line: “We believe if the recent OMER sell-off is due to the June 25th article, we believe the weakness is unwarranted, overdone, and should be used as a buying opportunity since we do not see any fundamental changes in Omeros’ situation and there are potentially material catalysts remaining in 2015.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 33.7% and a 53.9% success rate. Moussatos has a 34.0% average return when recommending OMER, and is ranked #24 out of 3688 analysts.