Aurinia Pharmaceuticals Inc (AUPH) Shares Remain Substantially Undervalued: H.C. Wainwright
H.C. Wainwright top analyst Ed Arce imparts perspective on Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) after attending a key opinion leader (KOL) presentation hosted by the biotech firm on September 30th, where two venerable nephrologists and AUPH management provided a deeper look into lupus nephritis (LN), particularly highlighting historical mortality rates, coupled with insights into the current standard of care (SoC). Additionally, corporate executives indicated a more complete review of the results of the Phase 2b AURA-LV study of voclosporin, evaluating the drug’s ability to treat active lupus nephritis.
The KOL discussion further bolsters Arce’s “high conviction call” on the firm and the analyst therefore reiterates a Buy rating on AUPH with a price target of $10, which represents just under a 158% upside from where the shares last closed.
Arce believes, “We note that despite the positive investor reaction to Friday’s presentation […] AUPH shares still trade below the recent closing high on August 11 of $4.26, which was apparently driven by anticipation of positive AURA-LV results, which we firmly believe they were. Recall, the ~57% drop in AUPH shares on August 15 was driven by three key concerns with the AURA-LV data: 1) the number of deaths, or death rate; 2) the imbalance of the deaths across the treatment arms (we combine these two below); and 3) lack of dose response.”
“In summary, this data reinforces our bullish view of AURA-LV and our belief that AUPH shares remain substantially undervalued. We recommend investors consider taking or adding positions ahead of several key near-term catalysts,” Arce concludes.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Ed Arce has achieved a high ranking of #71 out of 4,193 analysts. Arce upholds a 42% success rate and gains 31.9% in his yearly returns. However, when recommending AUPH, Arce loses 2.9% in average profits on the stock.
TipRanks analytics demonstrate AUPH as a Strong Buy. Based on 4 analysts polled in the last 3 months, 100% rate a Buy on AUPH. The consensus price target stands at $9.50, marking a nearly 143% upside from where the stock is currently trading.