Roth Capital’s Focus Pick: Global Blood Therapeutics Inc (GBT)

Global Blood Therapeutics Inc (NASDAQ:GBT) shares rose about 9% today after the biopharmaceutical company initiated a Phase 1 trial evaluating GBT440 in healthy volunteers under hypoxic conditions and exercise conditions that maximally stress the function of the heart and lungs.

Subsequently, Roth Capital analyst Mark Breidenbach continues to identify GBT as a Focus Pick, with a Buy rating and price target of $47, which represents a potential upside of 70% from where the stock is currently trading.

Breidenbach noted, “We view the new trial as a welcome addition to the company’s list of 2017 catalysts and we believe that results from the study, expected in 2H17, could vividly illustrate GBT440’s impact on respiratory physiology.”

Looking forward, “We believe results from the ongoing IPF trials (GBT440-006 and ZEPHYR), could also be presented in 2H17, providing several potential catalysts while investors await readout from the first segment of the pivotal HOPE trial of GBT440 in sickle cell disease (SCD), which we view as the main value-driver for the company. While Basecamp may suggest a potential use for GBT440 in high-altitude athletics, we think the primary value of the study is to unequivocally demonstrate GBT440’s activity on respiratory physiology, which could directly benefit SCD and IPF patients.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Breidenbach has a yearly average return of -18.1% and a 29.5% success rate. Breidenbach has a 41% average return when recommending GBT, and is ranked #4330 out of 4459 analysts.

Overall, all the 6 analysts polled in the past 12 months rate GBT stock a Buy. With a return potential of 140%, the stock’s consensus target price stands at $66.25.

GBT Chart


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