Ladenburg analyst Kevin Degeeter was out pounding the table on shares of Synergy Pharmaceuticals (NASDAQ:SGYP), initiating a Buy rating and price target of $3.00, which represents a potential upside of 74% from where the stock is currently trading.
Degeeter wrote, “We view SGYP as a “specialty biotech” story combining 1) high barriers to entry based on NCE designation and novel chemistry with 2) clinical profile differentiated by ease of use and potential to grow the market through a focused commercial strategy. Our upbeat investment thesis is based, at least in part, on the following assumptions: 1) IBS-C is an underpenetrated market with significant potential to increase use of prescription products, 2) Trulance provides meaningful differentiation from incumbent GC-C agonist market share leader Linzess in terms of tolerability and reduced food effect and 3) collection of real world Trulance patient compliance data will validate the pharmacoeconomic value of Trulance and improve formulary access. Regarding near term news flow, we see two material catalysts in 2018; 1) strategic review to be completed in August could strengthen the company’s commercial position and 2) formulary wins could improve access and support initiation of DTC promotion.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Kevin Degeeter has a yearly average return of 19.3% and a 48% success rate. Degeeter is ranked #636 out of 4827 analysts.
Wall Street’s confidence backing this biotech player is strong, with TipRanks analytics showcasing SGYP as a Strong Buy. Based on 4 analysts polled in the last 3 months, all 3 are bullish on Synergy stock, while one remains sidelined. The 12-month average price target stands at $9.00, marking a nearly nearly 423% upside from where the stock is currently trading.
Synergy is a biopharmaceutical company focused on the development and commercialization of novel GI therapies. The company has pioneered discovery, research and development efforts on analogs of uroguanylin, a naturally occurring and endogenous human GI peptide, for the treatment of GI diseases and disorders. Synergy’s proprietary GI platform includes one commercial product TRULANCE and a second lead product candidate, dolcanatide.