Cantor Sees 500% Upside for Corbus Pharmaceuticals (CRBP) Stock

Cantor analyst Elemer Piros is out with a short brief on Corbus (NASDAQ:CRBP) shares after the drug maker reported 1Q18 financial results and provided an update on its corporate activities.

Focus remains on enrollment for the Phase 3 study in systemic sclerosis, RESOLVE-1, which is expected to read out in 1H20. Corbus also expects to report topline results from its Phase 2b CF study in 1H20. Additionally, the company plans to initiate the next clinical study of lenabasum for the treatment of dermatomyositis (DM) by the end of 2018.

Piros reiterates an Overweight rating on CRBP stock, with a price target of $32, which implies a huge upside of nearly 500% from current levels. (To watch Piros’ track record, click here)

“We arrive at our 12-month price target of $32/share by adding the after-tax, risk-adjusted NPV of future cash flows from Corbus’s cystic fibrosis, diffuse cutaneous systemic sclerosis, and dermatomyositis programs. Our model does not currently include revenues from SLE. We currently ascribe a 60% probability of success for lenabasum in systemic sclerosis, 50% in cystic fibrosis and 30% in dermatomyositis. The probability-adjusted, fully taxed (21%) NPV (15% discount rate) of future cash flows through 2033 (patent expiration for lenabasum) is ~$1.9 billion ($32/share), leading us to our 12-month price target of $32/share, by our calculation,” Piros explained.

Aside from this rating, CRBP has only received one other analyst rating in the last three months. Noble Financial analyst Caroline Palomeque has a Buy rating on the stock.

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