Synergy Pharmaceuticals: Patient Investors Will Be Rewarded At Current Prices, Says Roth Capital
In a research report released today, Roth Capital analyst Scott Henry maintained coverage with a Buy rating on Synergy Pharmaceuticals (SGYP), and a $8.50 price target, following the company’s second quarter business update, which includes $0.28 EPS loss that was $0.06 larger than Henry’s targeted $0.22 EPS loss due to higher R&D.
Henry noted, “Its no surprise that SGYP will have to raise considerable funds (likely in the next 6-months) to continue development and maximize the value of plecanatide. However, this overhang continues to weigh on the stock. Patient investors could be rewarded for absorbing this risk as we view plecanatide as a significantly undervalued asset within the gastrointestinal arena. We believe that this compound could have similar efficacy to FRX/IRWD’s Linzess (linaclotide) with potentially less diarrhea side effects.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Henry has a total average return of 22.2% and a 38.7% success rate. Henry is ranked #245 out of 3228 analysts.