Maxim Maintains Buy On Stem Cells Following 2Q14 Results; Sees %312 Upside For The Stock
In a research report published today, Maxim Group analyst Jason Kolbert maintained a Buy rating on StemCells Inc. (STEM), with a $5 price target, which represents a potential upside of 312% from where the stock is currently trading.
The following bullets contain some highlights from this report:
- Stem Cells reported the quarter, burning $8M in cash and closing the quarter with $38M in cash, enough to fund operations through proof-ofconcept in the current AMD trials, in our opinion.
- Management highlighted the dry AMD data released in May, which we have republished in this report. Expectations are for 12-14 sites and a year to complete enrollment, with the trial to begin by 4Q14. We discussed some of the dynamics around the “learning effect” that is seen in AMD trials. Management gave us confidence that the company is impacting the morphology of the underlying disease in a QOL change that patients can experience.
- Multiple trials are now ongoing, and we agree with management that we are approaching an inflection period with the company, driven by proof-ofconcept data that should emerge over the next two years.
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 8.2% and a 50.0% success rate. Kolbert has an 5.8% average return when recommending STEM, and is ranked #446 out of 3228 analysts.
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