Cardica: Broadfin’s 3 Nominees To Gain Board Seats, But Some Questions Remain, Says Wedbush
In a research report released today, Wedbush analyst Tao Levy reiterated an Outperform rating on Cardica (NASDAQ:CRDC) with a price target of $1.75, following the news that 3 of the company’s current board members (Kevin Larkin, Chairman of the Board; Richard Powers; and Jeffrey Purvin) will transition off the board to make room for Broadfin’s nominees.
Levy noted, “We view today’s news as a positive move in the right direction; however, it is also important to note that according to Cardica’s letter, it appears that the decision was reached without Broadfin’s endorsement.”
The analyst continued, “While we will need to see Broadfin’s response to Cardica’s letter, we would point out that Broadfin in its latest Proxy Statement (November 12, 2014) had sought to replace the following 3 board members (Jeffrey L. Purvin, John Simon and William H. Younger, Jr.); however, based on today’s letter, Cardica is looking to keep Mr. Simon and Mr. Younger on the board, and we do not know if Broadfin would find this composition of the board acceptable.”
In closing, “We believe the next step in this saga will be Broadfin’s response to Cardica’s letter; and later, on December 11, 2014, Cardica’s annual shareholder meeting.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tao Levy has a total average return of 27.2% and a 77.4% success rate. Levy has a -24.8% average return when recommending CRDC, and is ranked #126 out of 3377 analysts.