Canaccord Initiates Buy on Synergy Pharmaceuticals Inc; Sees 137% Upside for the Stock
In a research report issued today, Canaccord analyst Corey Davis initiated coverage on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP), with a Buy rating and a $11 price target, which represents a potential upside of 137% above Thursday’s closing price. The analyst shared his positive expectations on the stock, providing insights about it’s four maturing Phase 3 trials.
Davis wrote, “We have never been shy about taking swings in front of binary outcomes, and this one qualifies as one of the biggest we’ve seen in a while. With four Phase 3 trials maturing over the next 12 months in chronic idiopathic constipation (CIC) and constipation-predominant irritable bowel syndrome (IBS-C), with what we believe is a high likelihood of success and a large market that Actavis/Ironwood is still developing with Linzess — all in the context of a reasonable valuation — we find Synergy an attractive investment opportunity. If successful in Phase 3, we also think Synergy would make an attractive takeout candidate since it owns full worldwide rights on plecanatide.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Corey Davis has a total average return of 17.3% and a 55.4% success rate. Davis has a average return when recommending SGYP, and is ranked #285 out of 3607 analysts.