B.Riley FBR analyst Andrew D’silva maintained a Buy rating on Kindred Biosciences (NASDAQ: KIN) today and set a price target of $12.50. The company’s shares closed yesterday at $10.50.
D’silva noted:
“Biosciences (KIN) priced a $44M equity financing; the offering is expected to close on Friday, 6/22 (B. Riley FBR acted as co-manager). The company is issuing 4.6M shares of common stock at $9.50, and the offering will dilute existing shareholders by ~14%. The deal has a 30-day over-allotment option for an additional 0.7M shares. While we were modeling that KIN would raise ~$33M in gross proceeds over the next two years to help fund its commercialization, development, and biologics manufacturing facility buildout, our equity- offering assumptions called for 4M shares to be issued at $8.25/share. As a result, issuing 4.6M shares at $9.50/share is modestly favorable to KIN’s valuation when evaluating the company on its enterprise value.”
According to TipRanks.com, D’silva is a 4-star analyst with an average return of 21.5% and a 52.3% success rate. D’silva covers the Healthcare sector, focusing on stocks such as Cumberland Pharmaceuticals Inc., Cytosorbents Corp, and Cytori Therap.
Kindred Biosciences has an analyst consensus of Moderate Buy, with a price target consensus of $12.25.
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Based on Kindred Biosciences’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $9.97 million. In comparison, last year the company had a GAAP net loss of $6.49 million.
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Kindred Biosciences, Inc. is a development-stage biopharmaceutical company, which focuses on saving and improving the lives of pets. The company was founded by Richard Chin and Denise M. Bevers on September 25, 2012 and is headquartered in Burlingame, CA.
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