In a research report released Thursday, Cantor analyst William Tanner initiated coverage on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) with an Overweight rating and price target of $11, which represents a potential upside of nearly 200% from where the stock is currently trading.
Tanner says that the FDA approval of Trulance (plecanatide) positions SGYP well to bring an important new therapy to the market for treating gastrointestinal disorders such as chronic idiopathic constipation (CIC).
Mimicking the effects of the endogenous peptide hormone uroguanylin, Tanner believes it possible that Trulance could produce a treatment effect that appropriately balances opposing forces of constipation and diarrhea.
Approval of the sNDA for Trulance to treat irritable bowel syndrome with constipation (IBS-C) should present the company with an attractive second commercial opportunity, in his opinion. Moreover, the analyst notes that entering relatively crowded markets populated with established products, a perception that Trulance compares favorably with alternative options should bias success.
Beyond plecanatide, Tanner believes the next-generation uroguanylin analog dolcanatide could further expand the opportunity set, if it is successfully developed and commercialized for treating ulcerative colitis (UC).
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst William Tanner has a yearly average return of 6.3% and a 49% success rate. Tanner has a average return when recommending SGYP, and is ranked #1186 out of 4567 analysts.
Out of the 6 analysts polled by TipRanks (in the past 3 months), 5 rate Synergy stock a Buy, while 1 rates the stock a Sell. With a return potential of 242%, the stock’s consensus target price stands at $12.40.