Roth Capital Pounds The Table On Palatin Technologies, Inc. (PTN)
Roth Capital analyst Michael Higgins was out pounding the table on shares of Palatin Technologies, Inc. (NYSEMKT:PTN) Tuesday, resuming coverage with a Buy rating and a price target of $1.50, which implies an upside of 268% from current levels.
Higgins wrote, “We are re-establishing coverage of Palatin with a Buy rating and $1.50 price target following successful pivotal results, a $16.5M equity raise in December and the licensing of Rekynda’s North American rights to AMAG Pharmaceuticals (AMAGNC), which included an upfront payment of $60M. We believe investors are disappointed the company wasn’t acquired, but with the potential for $80M in regulatory milestones and $25M in reimbursed R&D, we believe the current enterprise value of ~$45M undervalues Rekynda’s value in treating FSD.”
“We believe the market undervalues the size of the FSD market, the enthusiasm for a safe, effective and well-tolerated agent like Rekynda and the pace of its adoption. Factors that may impede shares from reaching our 12-month price target include a delay in Rekynda’s NDA filing (early ’18) or higher than expected operating expenses,” the analyst added.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Higgins has a yearly average return of -17.4% and a 28% success rate. Higgins is ranked #4243 out of 4359 analysts.
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