Maxim Assumes Buy On Neostem Ahead Of Data Release At AHA Annual Meeting


In a research report released today, Maxim Group analyst Jason Kolbert reiterated a Buy rating on Neostem (NASDAQ:NBS) with a $15 price target, which represents a potential upside of 172% from where the stock is currently trading.

Kolbert noted, “Data are coming (American Heart Association’s annual meeting on November 17, 2014.) next week. Binary Event Ahead (but not really): We estimate the chances that the data will be: Great (5%), Good (50%), OK (35%), or Bad (10%). Each scenario will drive a different valuation. We believe that the highest probability is “good” data, where the STEMI trial shows that the delivery of stem cells post-STEMI reduces negative cardiac remodeling, and, in doing so, reduces MACE (Major Adverse Cardiac Event) and mortality.”

The analyst concluded, “For the first time, Neostem will offer regenerative medicine enthusiasts a real look at data. We have a positive bias that the trial results will be “good.” Good data supports an enhanced valuation of the company and paves the way for the progression to a pivotal program in the cardiac space. In addition, Neostem has a pivotal cancer immunology asset too that is about to enter a PIII trial.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 5.7% and a 39.0% success rate. Kolbert is ranked #648 out of 3372 analysts.

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