Catabasis Pharmaceuticals Inc (NASDAQ:CATB) shares are falling 16% today after having just risen approximately 80% last week, placing the biotech stock in full upheaval. Wedbush analyst Liana Moussatos continues to be bullish on the volatile stock, even when “CATB [was] ripping on relatively high volume and no news,” reiterating an Outperform rating on CATB with a price target of $4, which represents a just under 129% increase from where the shares last closed.
With CATB closing at $1.33 last Thursday and trading around $2 to $3 Friday mid-day, though the analyst saw “no news to support this stock action,” she remains optimistic long-term on Duchenne muscular dystrophy drug Edasalonexen, regardless of needle-moving fluctuations.
“Although not statistically significant, the efficacy endpoints in MoveDMD Part B showed consistent numerical trends at 100mg/kg/day of edasalonexent after 12 weeks,” continues the analyst.
Overall, “We speculate positive DMD Phase 2 results may also trigger the acquisition of Catabasis. If Phase 2 results end up being statistically significant, edasalonexent may become the first new chemical entity with positive clinical results for DMD. We project gross peak annual worldwide sales could reach over $700 million. We anticipate many companies developing drug candidates for orphan diseases could be interested in CATB,” Moussatos concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Liana Moussatos is ranked #325 out of 4,517 analysts. Moussatos has a 44% success rate and gains 11.8% in her yearly returns. However, when recommending CATB, Moussatos loses 43.6% in average profits on the stock.
TipRanks analytics show CATB as a Buy. Based on 5 analysts polled by TipRanks in the last 3 months, 3 rate a Buy on Catabasis stock while 2 maintain a Hold. The 12-month average price target stands at $6.90, marking a nearly 288% upside from where the stock is currently trading.