Geron Corporation Is Undervalued Based On Its Revenue Opportunity: MLV
MLV’s healthcare analyst Thomas Yip weighed in with a few insights on Geron Corporation (NASDAQ:GERN), following the company’s second-quarter results and update on its clinical progress. Additionally, the analyst maintained a Buy rating on Geron shares, with a $6.00 price target, which implies an upside of 68.5% from current levels.
Yip observed, “As outlined in its clinical trial registry, IMbark will evaluate imetelstat in two dosages (4.7 or 9.4 mg/kg) in about 200 patients who are refractory or relapsed after treatment with a Janus Kinase (JAK) inhibitor, measuring spleen size changes and total symptom score (TSS) as the trial’s primary endpoints. We think the rapid accumulation of clinical sites reflects clinical investigators’ confidence in imetelstat.”
“We continue to think Geron is undervalued based on its revenue opportunity in the U.S. MF market, which we estimate to be worth over $2.5 billion by 2028. We project imetelstat’s U.S. approval and market launch in 2022, with gross sales reaching over $1.5 billion by 2028. Imetelstat’s orphan-drug status granted by the FDA in June for the MF indication strengthens our belief that imetelstat could meet our projected clinical timeline.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Thomas Yip has a total average return of -0.1% and a 42.9% success rate. Yip has a 12.6% average return when recommending GERN, and is ranked #2676 out of 3728 analysts.
All the 3 analysts polled by TipRanks rate Geron stock a Buy. With a return potential of 54.5%, the stock’s consensus target price stands at $5.50.