In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Mirati Therapeutics (MRTX), with a price target of $85. The company’s shares opened today at $72.01, close to its 52-week high of $79.31.
White wrote:
“Our $85 price target is based on a sum-of-the-parts analysis determined by probability adjusted revenue forecasts for sitravatinib, mocetinostat, and MRTX849. We use the net present value of our revenue forecast through 2027, apply a 50% probability of success (POS) for sitravatinib in combination with checkpoint inhibitors, a 45% POS for sitravatinib monotherapy, 15% POS for mocetinostat, 10% POS for MRTX849, and our YE2019 fully diluted net cash estimate of $4.47/share to arrive at our price target. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 4x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 13.3% and a 47.1% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
Currently, the analyst consensus on Mirati Therapeutics is a Strong Buy with an average price target of $78.33, implying an 8.8% upside from current levels. In a report issued on February 15, Piper Jaffray also initiated coverage with a Buy rating on the stock with a $85 price target.
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Based on Mirati Therapeutics’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $27.57 million. In comparison, last year the company had a GAAP net loss of $17.9 million.
Based on the recent corporate insider activity of 24 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 MRTX in relation to earlier this year.
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Mirati Therapeutics, Inc. is a clinical-stage oncology company, which engages in developing a pipeline of oncology products to treat genetic, immunological and epigenetic drivers of cancer in subsets of cancer patients. Its clinical pipeline consists of glesatinib, sitravatinib and mocetinostat.
