Maxim Group Upgrades Sucampo Pharmaceuticals To Buy, Increases PT To $10
In a research note published today, Maxim Group analyst Jason Kolbert upgraded shares of Sucampo Pharmaceuticals (NASDAQ:SCMP) from a Hold rating to a Buy and increased his price target to $10 (from $7). This comes following the announcement that SCMP, its subsidiaries, and partners have entered into a settlement and license agreement with Anchen Pharmaceuticals (private) and Par Pharmaceuticals (private) to resolve the patent litigation issue in the U.S. related to AMITIZA (8 mcg and 24 mcg soft gelatin capsules).
Kolbert wrote, “The constipation market is now very competitive, and while Amitiza sales are growing, we still have concerns. However, the removal of generic risk for the next seven years is an important positive development that lowers risk. We believe the company is now thinking about product acquisition opportunities too. Modifying our discount rate from 15% to 10% with no other changes to our model drives our price target from $7.00 to $10.00 per share, which justifies our return to a Buy rating.”
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 5.7% and a 45.9% success rate. Kolbert has a -19.3% average return when recommending SCMP, and is ranked #558 out of 3335 analysts.