In a research report published Tuesday, BTIG analyst Tim Chiang initiated coverage on shares of Synthetic Biologics Inc (NYSEMKT:SYN) with a Buy rating and a $5.00 price target, which represents a potential upside of 121% from where the stock is currently trading.
Chiang wrote, “We derive our $5 per share valuation for Synthetic Biologics based on our probability-weighted analysis for SYN-010 and SYN-004. For SYN-010, we assign a value of $3 per share, with SYN-004 contributing $2 per share to the valuation of Synthetic Biologics. While we have yet to see SYN-010 Phase 2 results (expected in 4Q15), we believe the company has an experienced group of researchers (led by Dr. Mark Pimentel, Director of the Cedars-Sinai Medical Center’s GI Motility Program).”
Furthermore, “With the recent appointment of Dr. Klaus Gottlieb as a Vice President of Clinical/Regulatory (formerly with Quintiles and a Senior Clinical Reviewer at the FDA’s Division of Gastroenterology, we believe SYN-010 has an experienced medical group with years of experience developing GI products and evaluating clinical studies.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Chiang has a total average return of 23.7% and a 80.0% success rate. Chiang is ranked #190 out of 3730 analysts.
Out of the 3 analysts polled by TipRanks, 2 rate Synthetic Biologics stock a Buy, while 1 rates the stock a Hold. With a return potential of 180.2%, the stock’s consensus target price stands at $6.33.