Canaccord Pounds the Table on Synergy Pharmaceuticals Inc (SGYP)
Canaccord analyst John Newman was out pounding the table on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP), reiterating a buy rating and price target of $13, which implies an upside of 127% from current levels.
Newman wrote, “We continue to expect positive Phase 3 data for plecanatide from two Phase 3 studiesby YE16, with significant potential upside for shares. Specifically, we look for a low rateof diarrhea, as seen in the prior Phase 2b study, which should differentiate plecanatidefrom Linzess.”
“We do not expect any delay in FDA action on plecanatide, with FDA approval expected January 29, 2017. Importantly, even though FDA approved Linzess simultaneously for both CIC and IBS-C, we do not expect the agency to request IBS-C data for plecanatide before ruling in the CIC indication. The two Phase 3 studies enrolled ~2,600 patients combined, compared to ~1,260 patients combined from two Phase 3 studies for Linzess. We believe Forest may have submitted the combined CIC and IBS-C data for Linzess in order to bolster safety data,” the analyst continued.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -9.5% and a 37.1% success rate. Newman has a 36.8% average return when recommending SGYP, and is ranked #4097 out of 4214 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Synergy Pharmaceuticals stock a Buy. With a return potential of 98.5%, the stock’s consensus target price stands at $11.38.