Canaccord Reiterates Buy on Mast Therapeutics Inc Following 3Q:15 Update
In a research report issued Friday, Canaccord analyst John Newman reiterated a Buy rating on shares of Mast Therapeutics Inc (NYSEMKT:MSTX), with a $3.00 price target, after the company reported its third-quarter results and outlined its ambitious clinical development strategy for its pipeline in its conference call yesterday.
Newman noted, “On its 3Q15 conference call, Mast Therapeutics announced that its Phase 3 EPIC study of vepoloxamer for vaso-occlusive crisis (VOC) had reached over 80% enrollment, with a higher enrollment in the first dozen days of November than in all of October. Despite this, slow enrollment in October led the company to push back its guidance on the study’s timeline, expecting completion of enrollment now in 1Q16 and top-line data in 2Q16. This setback is ultimately a relatively minor one of a few weeks, and we continue to expect the data to be positive.”
“We maintain our BUY rating and $3 price target based on a probability adjusted NPV for vepoloxamer in VOC and AIR001 in HFpEF. We are slightly lowering our FY15 EPS estimate to $(0.23) from $(0.22) due to higher R&D spending,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of -0.5% and a 36.8% success rate. Newman has a -13.8% average return when recommending MSTX, and is ranked #2832 out of 3842 analysts.
All the 4 analysts polled by TipRanks rate Mast Therapeutics stock a Buy. With a return potential of nearly 582%, the stock’s consensus target price stands at $3.00.