GW Pharmaceuticals PLC- ADR (GWPH) Remains Top Mid-Cap Pick: Piper Jaffray

Piper Jaffray analyst Joshua Schimmer provides a 2H16 outlook on GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH). Exiting second-quarter earnings season, GWPH remains one of Schimmer’s top mid-cap picks. In light of positive expectations after finding 2016 a “noteworthy success for the company,” Schimmer reiterates an Overweight rating with a $147 price target, which represents a nearly 79% increase from where the shares last closed.

Investor focus has begun to shift to commercial outlook for Epidiolex, a promising cannabis-based drug for epilepsy that passed its first Phase 3 clinical trial back in March. In Schimmer’s eyes, GWPH has potential to expand its cannabidiol horizons, and many have found the pipeline drug to be a “novel seizure drug.” However, doubt enters as to whether Epidiolex can reach over $1 billion in global revenue, with Schimmer left shaking his head at the naysayers in the room.

Schimmer notes, “Ever since the first anecdotal report of CBD’s potent activity in Dravet Syndrome, GWPH has been a battleground stock for investors. Initial doubts about the drug’s utility in DS shifted to questions about its utility in LGS, and both have clearly been proven wrong. Concerns subsequently shifted to whether the P3 trials were designed appropriately […] and again those were proven misplaced. Now the concerns have again shifted, focused on the next P3 LGS study, the clobazam drug interaction and the addressable patient population, and again we expect GWPH to prove its doubters wrong.”

According to TipRanks, Joshua Schimmer is ranked #3,983 out of 4,121 analysts. Schimmer has a 38% success rate and faces a loss of 7.4% in his annual returns. However, when recommending GWPH, Schimmer earns 2.6% in average profits on the stock.

TipRanks analytics exhibit GWPH as a Buy. Based on 7 analysts polled in the last 3 months by TipRanks, 6 rate a Buy on GWPH, while 1 issues a Sell. The consensus price target stands at $129.67, marking a 56% upside from where the stock is currently trading.

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