Celsion Corporation (CLSN) Stock Fires to the Roof on Back of New Bull’s Confident Bet
Oppenheimer's Hartaj Singh sees 227% upside potential for CLSN.
Celsion Corporation (NASDAQ:CLSN) shares rose 7% yesterday and continue to skyrocket 29% in pre-market trading today after word got out to the Street that there is a new bull in town backing this biotech player’s opportunity.
From the eyes of Oppenheimer analyst Hartaj Singh, all of Celsion’s previous stumbles just better ground the drug maker for “success.” For the skeptics running loose, the analyst underscores the crucial point of clinical studies of bringing hypotheses to the table, where past analysis as well as “learnings” have since allowed the company to create a “robust” OPTIMA Phase 3 study set to post data in 2019. Should the trial succeed, the analyst predicts ThermoDox a proprietary heat-activated liposomal encapsulation of doxorubicin, a proven and commonly used cancer drug, could earn $300 to $500 million in revenue for Celsion.
As such, the analyst initiates coverage on CLSN stock with an Outperform rating and a price target of $9, which implies a 227% upside from current levels. (To watch Singh’s track record, click here)
Singh highlights, “CLSN had a well-known Phase 3 failure (HEAT study) in 2013. Subsequent criticism of the failure and CLSN’s post-hoc analyses of various subsets have contributed to much skepticism around lead program ThermoDox for liver cancer. CLSN’s continuation of the study (to 2016) , thorough analysis of one of the largest studies ever run in liver cancer (N=701), an independent NIH analysis of HEAT, and our own physician checks lead us to posit that CLSN has an increased chance of success for its second ongoing Phase 3 OPTIMA. With another compelling (early stage) asset in GEN-1, we advise investors to heed a much-maligned story.”
Bottom line, “CLSN has taken the long (6-7 years between HEAT and OPTIMA results) and hard (fundraising activities and dilution that have hit the stock) road to potentially finally finding OPTIMA(L) redemption. We advise investors who are skeptical of the story to look beyond the company’s rocky history to the clinical data,” the analyst concludes, putting it bluntly: “We are bullish.”
According to TipRanks, Singh is joining a small party of bulls on the Street already rooting for the drug maker’s success, as out of 3 analysts polled in the last 12 months, all 3 are bullish on Celsion stock. The 12-month average price target stands at $12.33, marking a nearly 348% upside from where the stock is currently trading.