Synergy Pharmaceuticals (NASDAQ:SGYP) investors eagerly anticipating news regarding the company’s progress in commercializing its lead drug, Trulance, an FDA-approved treatment for chronic idiopathic constipation.
As the drug maker gears up to deliver its first-quarter results come May 10, Canaccord analyst John Newman reiterates a Buy rating on the stock, with a price target of $13, which implies an upside of 723% from current levels.
Looking back, Synergy reported fourth-quarter sales of $9.4 million, beating Wall Street expectations of $7.1 million. The company also reported a loss of $0.16 per share that was $0.03 ahead of estimates.
In his research note today, Newman wrote, “We believe Trulance is on track to deliver notable growth in 2018 – we estimate revenues of ~$62M, which we believe should move shares higher. We struggle to understand how SGYP does not move higher over the course of 2018, given prescriptions continue to grow, despite Linzess competition (which is flattening). Long term, we forecast US peak sales of $700M by 2024.”
“Historically, Linzess has showed flattish 1Q prescriptions vs 4Q due to the Medicare part D doughnut hole as well as insurance deductibles, hence the trend in Trulance prescriptions. Notably, March prescriptions are up substantially vs February 2018,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of 15.9% and a 45% success rate. Newman has a -38.7% average return when recommending SGYP, and is ranked #233 out of 4775 analysts.
How does Newman’s bullish bet weigh in against the Street? It appears the analyst is not the only one enthusiastic on this drug maker’s prospects, with TipRanks analytics demonstrating SGYP as a Strong Buy. Out of 4 analysts polled in the last 3 months, all 4 are bullish on Synergy stock. With a return potential of nearly 460%, the stock’s consensus target price stands at $8.75.