Alcobra: While The Stock Is Under Pressure Our Long-Term Thesis Remains Intact, Says Roth Capital


In a research report sent to investors yesterday, Roth Capital analyst Debjit Chattopadhyay maintained a Buy rating on Alcobra Ltd (NASDAQ:ADHD), but reduced his price target to $30 (from $40), following the news that┬átopline data from the company’s AL012 study did not meet primary endpoint.

Chattopadhyay noted, “A deeper dive into other phase 3 studies with both stimulants and non-stimulants points to an out-performance of the placebo cohort and MDX activity, which compares favorably. While the stock is under pressure, our long-term thesis remains intact.” The analyst added, “With two phase 2 studies expected to report during 4Q14, potential meeting with the FDA to iron out regulatory strategy, and additional analysis of the phase 3 study, we believe the stock has multiple value drivers and do not expect management to access the capital market at current levels.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of -11.1% and a 22.0% success rate. Chattopadhyay has a -58.4% average return when recommending ADHD, and is ranked #3264 out of 3318 analysts.

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