FBR analyst Vernon Bernardino, one of Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) biggest bulls, is slashing the price target for the drug maker to $14.00 (from $30.00), while reiterating an Outperform rating. The new price target implies an upside of 254% from current levels.

Bernardino explained, “We think progress with RX-3117, as well as with Supinoxin (RX-5902) and Archexin, continues at a pace that is only encumbered by RNN’s finite financial resources. We consider RNN’s resources ($20.3M in cash) to be sufficient through 1H18, and we look for the company to raise cash through a financing in early 2018 prior to a licensing deal that, we expect, could be signed in 2020 (versus the prior FBR estimate of 2019). To reflect these changes to our models, we lower our $30 price target.”

However, “We think RNN’s progress with its transition into a proof-of-concept (POC)-stage company is underappreciated. We point to completion of the first stage of RNN’s Phase IIa study with RX-3117 in patients with pancreatic cancer and initiation of the second stage of the study, as well as initiation of a Phase IIa study in patients with advanced bladder cancer, as important validation points demonstrating that RNN’s assets are maturing to a level that can soon be leveraged into potentially lucrative out-licensing opportunities.”

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 Vernon Bernardino has a yearly average return of -6.4% and a 33% success rate. Bernardino has a 31.2% average return when recommending RNN, and is ranked #4432 out of 4567 analysts.

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