Analysts are weighing in on the biopharmaceutical companies Cytori Therapeutics Inc (NASDAQ:CYTX) and Osiris Therapeutics, Inc. (NASDAQ:OSIR), as shares of both companies fell sharply today, hovering near 52-week low.
Cytori Therapeutics Inc
Cytori shares are collapsing today, down around 33% at time of writing after the company announced that it has entered into definitive agreements with the key principal holders of all of the outstanding Series A-1 and A-2 warrants issued in May and August of 2015 as well as warrants issued in October 2014.
Maxim analyst Jason Kolbert was the first to commented: “Cleaning up these outstanding warrants which did have anti-dilution provisions is an important positive step for the company as the focus now shifts around clinical events in 2016.” The analyst continued, “We anticipate (cashless exercises) that the cost of the clean-up today will be aprox, 36.5M common shares, eliminating aprox. 50M warrants. Specifically warrant holders will receive approximately 0.73 common shares for each cashless exercise of a warrant.”
The analyst reiterated a Buy rating on shares of Cytori Therap. with a price target of $5, which implies a huge upside from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -15.5% and a 29.1% success rate. Kolbert has a -48.1% average return when recommending CYTX, and is ranked #3635 out of 3643 analysts.
All the 4 analysts polled by TipRanks rate Cytori Therapeutics stock a Buy. With a return potential of 1452.4%, the stock’s consensus target price stands at $3.13.
Osiris Therapeutics, Inc.
In a research report issued Friday, Brean Capital analyst Jason Wittes reiterated a Sell rating on shares of Osiris Therapeutics, with a price target of $8, after the company issued an 8-K announcing the resignation of its auditor since 2013, BDO USA, LLP (“BDO”), which was received on December 14th. Osiris shares reacted to the news, dropping 7.16% to $10.12 on heavy volume.
Wittes commented, “It’s never comforting to hear that a company’s auditor has decided to resign, especially since there were clear disagreements and evidence of aggressive accounting practices (reviewed below), however Ernst and Young represents an upgrade to a larger more established accounting firm. That said, we still anticipate more issues during the annual 10K audit, which creates a fair amount of uncertainty, and the stock will likely see more pressure today. Quarterly results do not require a full audit, but the 10K does and the company is still in the process of restating FY2014-2Q15.”
According to TipRanks.com, analyst Jason Wittes has a yearly average return of 4% and a 55.2% success rate. Wittes has a 0.6% average return when recommending OSIR, and is ranked #765 out of 3643 analysts.
Out of the 2 analysts polled by TipRanks, 1 rate Osiris Therapeutics stock a Sell, while 1 rates the stock a Buy. With a return potential of 82%, the stock’s consensus target price stands at $18.