Genocea Biosciences Inc (NASDAQ:GNCA) shares are shooting up 25% faster than Jack’s magic bean sparking right into a giant beanstalk. The reason? Cantor analyst Mara Goldstein initiated coverage on GNCA with a Buy rating and price target of $5.00, which implies an upside of 385% from Monday’s closing price of $1.03.
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. (To watch Goldstein’s track record, click here)
If you are looking for a reason to buy shares of Genocea, here are four reasons, courtesy of Goldstein: Mara Goldstein
- Neoantigens are the Next Wave – Personalized therapies such as neoantigen vaccines hold the potential to widen the scope patients able to be treated with immunooncology drugs, either singly or in combination with other agents, and represent, in our view, a potential fundamental shift in cancer treatment, potentially akin to the promise of CAR-T in hematological malignancies.
- Track Record of Clinical Success – Prior to pivoting to neoantigen-based therapies, GNCA had brought an HSV-1 vaccine through Phase II development, and is presently looking to outlicense the program.
- Improving Cash Position – GNCA has roughly $60 million in cash, recently augmented by a raise in January 2018, which gives the company runway into mid-2019, but this could be lengthened should the company be able to renegotiate terms of the debt facility.
- Under the radar screen – Given the challenges of developing GEN-003 for a company of Genocea’s size, Genocea refocused the company’s development efforts to neoantigen vaccines in 3Q17. We think that ATLAS is uniquely suited for this but is not fully appreciated, if for no other reason than the neoantigen program had not been previously valued by investors, in our view.
If we step back and look at the bigger picture, we can see that overall the stock has a ‘Strong Buy’ analyst consensus rating. In the last 12 months, the stock has received 6 Buy ratings and just 1 Hold rating. With a return potential of 264%, the stock’s consensus target price stands at $3.75.