Maxim analyst Jason Kolbert was out pounding the table on MannKind Corporation (NASDAQ:MNKD) Friday, reiterating a Buy rating and price target of $4.00, which implies an upside of 83% from current levels.
Kolbert wrote, “MannKind is heading in the right direction with a new management team, the re-launch of Afrezza, a label change coming, and a platform inhalation technology that could expand to multiple indications beyond insulin.” the analyst continued, “So what’s holding back the valuation? The bears will bang on debt drums, but do the analysis and you should see what we do…a company positioned to grow.”
Can Afrezza revenues ultimately overcome the debt? “Yeah, “IOHO” (In Our Humble Opinion) we think so but it’s going to take time (& additional capital – equity and/or debt) to drive patient adoption. Our research (interviews with diabetes patients) tells us that patient understanding of how to best utilize a rapid acting insulin, learning how to titrate dose and altering habits is a learning curve but adoption will happen. Ease of use and rapid onset are great features vs. injection (time to see levels adjust),” Kolbert added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -9.4% and a 34.5% success rate. Kolbert has a 27.2% average return when recommending MNKD, and is ranked #4615 out of 4669 analysts.
Overall, out of the 3 analysts polled in the past 12 months, 2 rate MannKind stock a Sell, while 1 rates the stock a Buy. With a return potential of 4%, the stock’s consensus target price stands at $2.27.