MLV Pounds the Table on Rexahn Pharmaceuticals
In a research report released today, MLV analyst Vernon Bernardino initiated coverage on shares of Rexahn Pharmaceuticals, Inc. (NYSE MKT:RNN) with a Buy rating and a $1.25 price target, which represents a potential upside of 75% from where the stock is currently trading.
Bernardino noted, "We believe investors undervalue Rexahn’s clinical-stage oncology assets, which have demonstrated activity in multiple tumor types. We anticipate Rexahn will out-license commercialization of each asset in 1-2 types of cancer, with revenue streams from each worth $0.10- $0.25/sh, and upside potential with advancement in at least 1-2 other cancers ($0.10-$0.50/sh). As a result, we believe the premium valuations ascribed to other oncology-focused companies (EV of $285MM), whose assets we note do not have the broad activity of Rexahn’s compounds, should be extended to Rexahn."
Furthermore, "We believe the overhang of a near-term capital raise now passed. With $36MM in cash and our forecast for $34MM in OpEx through 2017, we believe the material risk of shareholder dilution minimal. Therefore, with multiple catalysts anticipated through 2015, we believe current prices offer attractive entry points and would be buyers of the stock."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of -8.6% and a 34.2% success rate. Bernardino is ranked #3397 out of 3535 analysts.