Maxim Reaffirms Buy On Synthetic Biologics; Sees 266% Upside For The Stock


In a research report published Friday, Maxim Group analyst Jason Kolbert reaffirmed a Buy rating on Synthetic Biologics (SYN) with a $6 price target, which represents a potential upside of 266% from where the stock is currently trading.

The following bullets contain some highlights from the report:

  • We recently spent some time evaluating a side by side comparison of Receptos (RCPT), a $900M market capitalized company who’s most advanced product is RPC1063, a drug being developed for rMS. We conclude that by comparison the data for Trimesta looks quite good, suggesting a real valuation gap exists.
  • We understand that folks are skeptical of Synthetic Biologics recent data (relapse rates show a p-value of 0.1527) in a PII study but we feel investors are not giving credit to the company as the PII trial was never intended (nor powered) to produce a statistically significant result. 
  • We believe that if one examines the totality of the data, we see an approval drug that has the potential to impact not only the symptoms of MS but the disease progression (brain lesions and cognition).

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Jason Kolbert has a 5.5% average return and a 51% success rate. Kolbert has a -27.4% average return when recommending SYN, and is ranked #841 out of 3215 analysts.

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