Canaccord analyst John Newman is out today with a research note on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP), noting that early prescription trends are encouraging for Trulance, the company’s chronic idiopathic constipation drug.
“We are particularly encouraged by the conservative revenue recognition policy adopted by SGYP – the company is deferring Trulance revenue recognition until the prescriptions are dispensed to patients, based on IMS data,” the analyst wrote.
Newman continued, “Currently, 50% of Trulance prescriptions are from new patients, and 50% are from other branded prescriptions, which we view as positive. We had previously expected >90% of Trulance scripts to be from Linzess conversion, and we view new scripts as a better driver of growth. Should the prescription pattern continue, we would expect Trulance to gain market share at a higher rate.”
As such, Newman reiterates a Buy rating on shares of Synergy Pharma with a price target of $13.00, which represents a potential upside of 235% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -8.6% and a 34% success rate. Newman has a -8.7% average return when recommending SGYP, and is ranked #4497 out of 4564 analysts.
Out of the 6 analysts polled in the past 12 months, 5 rate Synergy Pharmaceuticals stock a Buy, while 1 rates the stock a Sell. With a return potential of 217%, the stock’s consensus target price stands at $12.30.