Brean Capital Reiterates Buy on Pernix Therapeutics Holdings Inc Following Restructuring Plans
In a research report published Friday, Brean Capital analyst Difei Yang reiterated a Buy rating on shares of Pernix Therapeutics Holdings Inc (NASDAQ:PTX), with a $3.00 price target, after the company announced a reduction of 60 employees and expects $10 million in annualized cost savings.
Yang noted, “We view this as a small step towards the right direction to unlock the value. We think potential successful execution of Treximet life cycle management is the most important catalyst we will watch for and we expect it to materialize before Q1, 2017.”
The analyst continued, “Treximet is expected to face generic entry in 2018. To pull off such a strategy, we expect the sNDA submission to occur not later than Q1 of 2017 and updates from management on the timing of such sNDA filing would be helpful in properly valuating Treximet. We believe the market currently assumes zero valuation in Treximet starting in 2018.”
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks.com, analyst Difei Yang has a yearly average return of -7.8% and a 43% success rate. Yang has a -74.2% average return when recommending PTX, and is ranked #3822 out of 4018 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Pernix Therapeutics stock a Hold, while 1 rates the stock a Buy. With a return potential of 509.5%, the stock’s consensus target price stands at $3.