Top Analyst Initiates Buy on GW Pharmaceuticals PLC- ADR (GWPH); Sees 45% Upside for the Stock

In a research report released on Friday, Goldman Sachs top analyst Salveen Richter initiated coverage on shares of GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) with a Buy rating and price target of $189, which represents a potential upside of 45% from where the stock is currently trading.

Richter explained that his bullish conviction about GWPH was due to: “GWPH’s lead asset is Epidiolex for Dravet Syndrome (DS) and Lennox-Gastaut Syndrome (LGS), two severe orphan epilepsies, which are de-risked post three positive Ph 3 studies. We anticipate a solid launch trajectory with widespread off-label use in nonDS/LGS epilepsies – we model $1.6bn in WW sales, of which 51% is derived from US pediatric off-label use. A barrage of pipeline catalysts should drive shares higher in 4Q16,”

The analyst concludes, “We expect GWPH shares to trade higher on the following pipeline catalysts: (1) publication of Epidiolex Ph 3 study in Dravet syndrome in a top-tier medical journal in 4Q, (2) American Epilepsy Society (Dec 2-6) meeting data to reinforce the clinical and safety profile, (3) Epidiolex Ph 3 study initiation in infantile spasms in 4Q, (4) Sativex Ph 2 data in cerebral palsy spasticity and THC:CBD Ph 2a data in recurrent glioblastoma in 4Q, (5) Epidiolex NDA submission in 1H17, (6) CBDV Ph 2 data in adult focal seizures/epilepsy in 1Q17, (7) AAN (Apr 22-28) data update, (8) initiation of CBDV Ph 2 study in autism spectrum disorders in 1H17, (9) Epidiolex Phase 3 dose-ranging Dravet study data in 2017, and (10) Epidiolex Phase 3 data in tuberous sclerosis complex in 2H17.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Salveen Richter has a yearly average return of 31.5% and a 70% success rate. Richter is ranked #79 out of 4190 analysts.

Out of the 8 analysts polled by TipRanks, 7 rate GW Pharmaceuticals stock a Buy, while 1 rates the stock a Sell. With a return potential of 12%, the stock’s consensus target price stands at $146.


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