Cantor Fitzgerald analyst Louise Chen initiated coverage with a Buy rating on Melinta Therapeutics Inc (NASDAQ: MLNT) yesterday and set a price target of $15. The company’s shares closed on Friday at $6.35, close to its 52-week low of $5.20.
“. We are initiating coverage of Melinta’s stock with an Overweight rating and $15 PT. Upward earnings revisions and multiple expansion will drive the shares higher, in our view. We think a greater appreciation for the company’s four commercial, antibiotic drugs (Baxdela, and its growing pipeline (new drugs, international expansion, additional indications) will increase earnings estimates to levels not yet reflected in consensus expectations. Also, MLNT is considering adjacent opportunities, which means it could become a diversified hospital company. This should improve its trading multiple, in our view.”
According to TipRanks.com, Chen has currently no stars on a ranking scale of 0-5 stars, with an average return of -5.8% and a 38.8% success rate. Chen covers the Healthcare sector, focusing on stocks such as Aclaris Therapeutics Inc, Paratek Pharmaceuticals, and Spero Therapeutics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Melinta Therapeutics Inc with a $11.50 average price target.
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Based on Melinta Therapeutics Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $29.43 million. In comparison, last year the company had a GAAP net loss of $12.27 million.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MLNT in relation to earlier this year.
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Melinta Therapeutics, Inc. is a commercial-stage biopharmaceutical company, which engages in the discover, development and commercialization of antibiotics. Its product, Baxbela, is used in the treatment of acute bacterial skin and skin structure infections.