In a report released today, Difei Yang from Mizuho Securities maintained a Buy rating on Concert Pharma (CNCE), with a price target of $26. The company’s shares closed yesterday at $14.28.
Yang noted:
“We applied a weighted average valuation methodology to CNCE under assumptions of commercialization of CTP-543 for alopecia areata with sales in the US starting in 2022. We also give consideration to CTP-692 with sales in the U.S. starting in 2024. Additionally, our price target calculation takes into account future milestones and royalties from the Avanir/Otsuka agreement for AVP-786 for the treatment of Alzheimer’s agitation starting in 4Q20 in the US. DCF: Our estimated 2028 FCF is $217 mil. We assumed a terminal value of 5.0x 2028 estimated FCF. We layered a probability of clinical success of 35% for in addition to a 13% discount rate to arrive at a $22 PT. EV/Sales: We apply a 5.0x multiple to our discounted 2025 sales of $108 mil to derive a $29 PT. Our weighted average PT is $26.”
According to TipRanks.com, Yang is a 5-star analyst with an average return of 15.2% and a 45.6% success rate. Yang covers the Healthcare sector, focusing on stocks such as Nightstar Therapeutics Limited, Xeris Pharmaceuticals Inc, and Alder Biopharmaceuticals.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Concert Pharma with a $24.25 average price target.
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The company has a one-year high of $26.15 and a one-year low of $10.80. Currently, Concert Pharma has an average volume of 221.4K.
Based on the recent corporate insider activity of 17 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 CNCE in relation to earlier this year.
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Concert Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company, which discovers and develops novel small molecule drugs through the use of deuterium technology. Its product candidates target a range of diseases including autoimmune disorders, inflammation, and central nervous system disorders.
