Maxim Heads to Sidelines on Synthetic Biologics Inc; Here’s Why
Maxim’s healthcare analyst Jason Kolbert came out today with a research note on Synthetic Biologics Inc (NYSE MKT:SYN), downgrading shares from Buy to Hold, and reiterating $3 price target. The decreased rating was in response to the company’s announcement that it will not move SYN-005 for pertussis, also known as whooping cough, until a funding source is found.
Kolbert noted, “As a result the timeline behind this program becomes another uncertainty in what has been a string of uncertain news flow in the company. Ambiguous results for Estriol in MS collapsed the stock last year and our concerns around the balance of the pipeline are high. As a result of the totality of the delays, we are lowering our rating to Hold.”
Furthermore, “We no longer see Trimesta as the principal driver for Synthetic Biologics and our optimism on the balance of the pipeline is waning. SYN-005 for pertussis is an interesting product, but until the company secures funding to move it forward, we see little to drive the stock higher. We value the company based on our FCFF, SOP and EPS models to derive a $3.00 fair value.”
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 11.3% and a 48.7% success rate. Kolbert has a 32.6% average return when recommending SYN, and is ranked #236 out of 3516 analysts.