Canaccord Analyst Pounds The Table On Synergy Pharmaceuticals Inc (SGYP)
Canaccord analyst John Newman was out pounding the table on Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Friday, reiterating a Buy rating and $13 price target, which represents a potential upside of 103% from last closing price.
Synergy Pharmaceuticals shares are rising nearly 9% in pre-market trading on the back of US FDA approval for TRULANCE, the company’s treatment for adults with chronic idiopathic constipation (CIC).
Newman commented, “The FDA label for Synergy’s Trulance (plecanatide) shows only 0.6% severe diarrhea, lower than the 2% for Linzess (Trulance label; Linzess label). Also, the overall rate of diarrhea is clearly shown as much lower for Trulance vs Linzess (5% vs. 16%) in chronic idiopathic constipation (CIC). In our view, it is glaringly clear that Trulance is much less likely to cause diarrhea than Linzess, which will likely be very important to both doctors and patients in the real world setting. Giving patients diarrhea to address constipation (Linzess) is not a favorable outcome for CIC or IBS-C, in our view.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -13.9% and a 29% success rate. Newman has a 47.8% average return when recommending SGYP, and is ranked #4294 out of 4365 analysts.
Out of the 6 analysts polled by TipRanks, 5 rate Synergy Pharmaceuticals stock a Buy, while 1 rates the stock a Hold. With a return potential of nearly 64%, the stock’s consensus target price stands at $10.50.