Maxim Keeps ‘Buy’ On Stem Cells Following Interim Phase I/II Trial Data
In a research note issued today, Maxim Group analyst Jason Kolbert reiterated coverage with a “Buy” rating on StemCells Inc. (STEM), and a price target of $2.50 a share following positive interim results from Phase I/II clinical trial of STEM’s proprietary HuCNS-SC human neural stem cell platform in dry age-related macular degeneration (AMD).
“This is early data it represents a best case outcome. This therapy represents a blockbuster opportunity (dry AMD) and could be transformational for the company. We use conservative metrics and a high discount rate to derive an NPV of $2.50, which is where we set our target price. With that said, our metrics may prove conservative as the company approaches mature POC data. Remember that the market opportunities in spine and AMD are large and totally unmet”, Kolbert wrote.
According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Jason Kolbert currently has a one-year average return of 10.6% and a 57% success rate. He is ranked #385 out of 3114 analysts.