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Maxim Reiterates Buy On Cytori Following First Patient Dosed In Phase II Trial For Knee Osteoarthritis


In a research report released this morning, Maxim Group analyst Jason Kolbert reiterated a Buy rating on Cytori Therapeutics Inc (NASDAQ:CYTX) with a price target of $7, after the company announced that first patient has been treated in its FDA-approved trial assessing the effect of its adipose-derived, point-of-care cell therapy fraction for osteoarthritis of the knee.

Kolbert observed, “We see Cytori more focused now on shorter trials that have the potential to provide real proof-of-concept (POC) data in late 2015 and early 2016.” Furthermore, “We assume Cytori will be successful in scleroderma and multiple other indications utilizing ADRCs (thermal burns, stress urinary incontinence, and osteoarthritis). We apply a 25% risk cut to our therapeutic model and a 30% discount to financial models for FCFF, discounted-EPS, and SOP to arrive at our new $7.00 price target.”

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 5.5% and a 45.4% success rate. Kolbert has a 4.9% average return when recommending CYTX, and is ranked #674 out of 3479 analysts.