Canaccord Genuity Hikes Aerie Pharmaceuticals (AERI) Price Target; Upgrades to Buy
Canaccord Genuity analyst Corey Davis came out with a favorable report on Aerie Pharmaceuticals Inc (NASDAQ:AERI) after the FDA allowed ROCKET 2’s primary endpoint to include patients with a baseline IOP of 25 mmHg or below, and agreed that the company may use a hierarchically-based statistical approach so the three arms of the trial will remain powered (>85%). The analyst upgraded the stock’s rating from Hold to Buy, while raising the price target to $40.00 (from $12.00), which implies an upside of 100% from current levels.
Davis commented, “ROCKET 2 is still expected to have results in Q3/15. We are now MUCH more comfortable about the approvability of Rhopressa, and have thus added it back to our model.” The analyst continued, “Since we know from ROCKET 1 that prostaglandins may sensitize the trabecular meshwork to a better Rhopressa response, we are optimistic that synergistic effects can be shown in the Roclatan Ph3s.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Corey Davis has a total average return of 20.0% and a 62.0% success rate. Davis has a -55.7% average return when recommending AERI, and is ranked #200 out of 3635 analysts.
Out of the 5 analysts polled by TipRanks, 3 rate Aerie stock a Buy, while 2 rate the stock a Hold. With a return potential of 26.1%, the stock’s consensus target price stands at $25.25.