Maxim Reiterates Buy on IntelGenx (IGXT) Stock as Tilray (TLRY) Comes Aboard
IntelGenx (IGXT) is a mover and shaker out on the Street today, with investors sparking the stock on an almost 40% upturn. Why the excitement? The drug maker announced that it has signed a non-binding letter of intent (LOI) with Tilray (TLRY), a research cannabis company to produce cannabis-infused medicinal VersaFilm products.
In reaction, Maxim analyst Jason McCarthy reiterates a Buy rating on IntelGenx shares with a price target of $3.00, which represents a potential upside of 156% from where the stock is currently trading
McCarthy commented, “Although it is non-binding agreement (for now), we view this news as an incremental positive for IntelGenx; further validates/support the VersaFilm platform potential and demonstrates VersaFilm’s ability to attract a sizeable, revenue-generating biotech company as a partner.”
The analyst continued, “The global legal cannabis market was $9.3bn in 2016 and is expected to reach $146.4bn by the end of 2025.” Furthermore, “Medicinal cannabinoids have been used to treat a lot of different conditions, including: chemotherapy-induced pain and nausea, as an appetite stimulant, epilepsy, Alzheimer’s, multiple sclerosis and so on..”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a yearly average return of 15.8% and a 49.6% success rate. McCarthy has a 11.1% average return when recommending IGXT, and is ranked #297 out of 4875 analysts.
Aside from this rating, IGXT has only received one other analyst rating in the last three months. 4-star H.C. Wainwrightanalyst analyst Swayampakula Ramakanth has a Buy rating on the stock with a $1.50 price target, which implies nearly 30% upside potential from current levels.