Dermira (DERM) Received its Third Buy in a Row


After Needham and Cantor Fitzgerald gave Dermira (NASDAQ: DERM) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Douglas Tsao reiterated a Buy rating on Dermira today and set a price target of $22. The company’s shares closed yesterday at $11.15.

Tsao observed:

“Our $22 price target for Dermira is based on our sum-of-the- parts NPV valuation based on the company’s two primary development programs, Qbrexza and lebrikizumab. Our DCF model utilizes a discount rate of 9.9%, which is based on the company’s equity cost of capital of 9.9% (Beta of 1.0, equity risk premium of 6.7%).”

According to TipRanks.com, Tsao is a 3-star analyst with an average return of 2.4% and a 52.2% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Revance Therapeutics, and Radius Health.

Currently, the analyst consensus on Dermira is a Strong Buy with an average price target of $22.14, a 98.6% upside from current levels. In a report issued on April 12, Cantor Fitzgerald also maintained a Buy rating on the stock with a $20 price target.

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Based on Dermira’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $71.81 million. In comparison, last year the company had a GAAP net loss of $59.25 million.

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Dermira, Inc. is a biopharmaceutical company, which engages in the provision of therapies for chronic skin conditions. It focuses on the development of therapeutic solutions in medical dermatology to treat skin conditions, such as hyperhidrosis and atopic dermatitis.

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