Given The Potential From Current Portfolio, We Believe The Shares Of Alliqua Are Undervalued, Says H.C. Wainwright


In a research report issued today, H.C. Wainwright Swayampakula Ramakanth initiated coverage on Alliqua (NASDAQ:ALQA) with a Buy rating and a price target of $10, which represents a potential upside of 150% from where the stock is currently trading.

Ramakanth wrote, “Alliqua is building a portfolio of diverse wound care products to become a major player in the $8 billion advanced wound care (AWC) market. We see AWC market dynamics shifting to stress adoption of new technologies spurring growth of an otherwise 4% annual growth market. To be part of the new market dynamics, Alliqua with a new management has a vision to build a full portfolio of products to address the diverse wound care needs.”

The analyst continued, “The company currently has a portfolio of six products, amassed through a series of strategic alliances, licenses, and distribution agreements, which we believe has the potential to grow to nearly $360 million by 2025. We expect management to continue building the product portfolio over the near term in key growth product categories including foam dressings, skin substitutes, extracellular matrix and/or novel technologies that would help leverage the current product portfolio.” 

The bottom line, “Given the potential from current portfolio of six products, upside potential from pipeline products and portfolio expansions, along with technical expertise of the management, we believe the shares of Alliqua are undervalued.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Swayampakula Ramakanth has a total average return of -18.5% and a 25.0% success rate. Ramakanth is ranked #3333 out of 3440 analysts.

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