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Maxim Analyst Comments on Cytori Therapeutics Inc Following Azaya Acquisition


Maxim analyst Jason Kolbert reiterated a Buy rating on shares of Cytori Therapeutics Inc (NASDAQ:CYTX) with a price target of $6.00, after the drug developer announced the acquisitions of Azaya Therapeutics for its proprietary liposomal nanoparticle technology platform and two oncology assets. Cytori shares are currently trading flat at $1.65.

Kolbert commnted, “We view the acquisition as opportunistic and potentially as a source of non-dilutive capital for Cytori. The risk is the distraction from the core business focus which remains on scleroderma. Given the tough environment for capital raising, we view the acquisition as a great option that could translate into a source of non-dilutive capital and down the road, free cash flow at minimal upfront cost.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -15.9% and a 28% success rate. Kolbert has a -32.6% average return when recommending CYTX, and is ranked #4290 out of 4355 analysts.

As of this writing, the 2 analysts polled by TipRanks rate Cytori stock a Buy. With a return potential of 371%, the stock’s consensus target price stands at $8.00.

Cytori Therapeutics is a late stage cell therapy company developing autologous cell therapies from adipose tissue to treat a variety of medical conditions. Data from preclinical studies and clinical trials suggest that Cytori Cell Therapy™ acts principally by improving blood flow, modulating the immune system, and facilitating wound repair. As a result, Cytori Cell Therapy™ may provide benefits across multiple disease states and can be made available to the physician and patient at the point-of-care through Cytori’s proprietary technologies and products.