Roth Capital analyst Debjit Chattopadhyay was out pounding the table on Alcobra Ltd (NASDAQ:ADHD) Tuesday, reiterating a Buy rating and a price target of $10, which represents a potential upside of 64.5% from where the stock is currently trading.
Chattopadhyay noted, “With a fortified balance sheet Alcobra could initiate its second phase-3 in adults with ADHD during 2Q15 (awaiting meeting minutes from the agency). Assuming minutes reflect our expectation of one, positive, adequately-powered study for NDA, it will be a robust catalyst for the stock, in our view. Other near-term catalysts include: dose finding study in adolescents with ADHD (1Q15) and randomized phase 2 in Fragile X (2Q15). Neither the adult ADHD or Fragile X is reflected in our current valuation.”
The analyst continued, “For FY 2014 we expect Alcobra to report net loss of $(31.5M) or $(2.30)/share. We are making adjustments to our model for 2015 to reflect the recent financing and the planned initiation of the adult phase 3 study during 2Q15. For 2015 we now expect a loss of $(25.2M) or $(1.17)/share vs. our prior expectation of $(23M) or $(1.22)/share.”
Alcobra Ltd., a biopharmaceutical company, focuses on the development and commercialization of proprietary drug candidates.