Brean Capital Reiterates Positive Outlook on Zogenix, Inc. Ahead of Reverse Stock Split
Brean Capital analyst Difei Yang weighed in today with his prediction Zogenix, Inc. (NASDAQ:ZGNX) ahead of the reverse stock split that will be implemented on July 1, 2015. The analyst reiterated a Buy rating on the stock with a price target of $2.50. Shares of ZGNX closed yesterday at $1.60, up $0.01, or 0.95%.
Yang noted, “We view the pending 1 for 8 reverse stock split positively for the share price and believe it may close the valuation gap between Zogenix and its peer group quicker than otherwise by attracting a wider institutional investor base. Our fundamental investment thesis has not changed, i.e., we view the company as having a higher-than-average probability in successfully developing ZGX008 as a treatment for Dravet syndrome, which is a debilitating orphan disease.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a total average return of 24.2% and a 75.4% success rate. Yang has a 17.5% average return when recommending ZGNX, and is ranked #136 out of 3635 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Zogenix stock a Buy, while 1 rates the stock a Hold. With a return potential of 77.1%, the stock’s consensus target price stands at $2.83.