Alpha BioPharma Initiates Buy On GlobeImmune; Sees The Stock At $17
In a research report issued today, Alpha BioPharma’s Paul Nunzio DeSantis initiated coverage on shares of GlobeImmune (NASDAQ:GBIM) with a Buy rating and $17 price target, which represents a potential upside of 140% from where the stock is currently trading.
DeSantis wrote, “After the sharp sell-‐off in GBIM shares on thin volume (<500,000 shares) with the release of initial chordoma data in mid-‐October (details below), risks in GBIM are limited setting up an attractive risk-‐reward ahead of value unlocking data in H2015. Importantly, all oscillators are in very oversold conditions, and we believe initiating positions ahead of AASLD (November 7th) and pivotal data in 1H2015 could see shares test $11.00 (61.8% retracement) that implies only a 5% probability of success. As a trade, this allows investors to go into the HBV event risk-‐free, with only profits at risk.”
The analyst continued, “Leading into the event, we’re defining “good data” as a 30-‐50% improvement in Viread monotherapy response rates (11%), or reduced time to response, which may propel shares to our fundamental base case DCF valuation for GS-‐4774 of $17/share. Any beat of our expectations and shares could trade to a 50% probability adjusted approval DCF valuation of $36 per share.”