TrovaGene Inc (TROV): Why This Analyst Remains Cautious on the Stock’s Short-Term Value
Shares of TrovaGene Inc (NASDAQ:TROV) climbed over 30% on Monday, after the drug maker announced that the first enrolled patient in the ongoing P1b/2 trial of PCM-075 + low dose chemotherapy in acute myeloid leukemia (AML) has successfully completed cycle-one dosing. The aim of the study is to evaluate PCM-075 in combination with low dose chemotherapy in patients with relapsed/refractory AML or who are ineligible for intensive induction therapy.
While the fundamentals for PCM-075 are good, Maxim analyst Jason Kolbert is waiting patiently on the sidelines, reiterating a Hold rating on TROV. Why? The analyst explains:
“Based on our assumed burn rate (close to $25M per year), the company will likely need to raise additional cash “soon”. Raising capital in the micro-cap biotech space can be difficult and terms can range from favorable to unfavorable. For these reasons we are hold / speculative-risk rated. However we remain fundamental believers in the opportunity we see for PCM-075, the company’s lead therapeutic drug.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -7.6% and a 35.2% success rate. Kolbert has a -59.3% average return when recommending TROV, and is ranked #4681 out of 4760 analysts.
Out of the 3 analysts polled in the past 12 months, 1 rates TrovaGene stock a Buy, 1 rates the stock a Hold and 1 recommends a Sell. With a return potential of 81%, the stock’s consensus target price stands at $0.75.