In a report released today, Douglas Tsao from H.C. Wainwright initiated coverage with a Buy rating on Chiasma (CHMA) and a price target of $11. The company’s shares closed yesterday at $3.70.
Tsao said:
“Valuation Our $11 price target is based on our DCF valuation. Our DCF model assumes a terminal decline rate of 10%, and WACC of 10.0% (Beta of 1.0, equity risk premium of 5.6%). We assume a 24% tax rate. We apply a 75% risk adjustment to our valuation to account for probability of success for the U.S. and European trials.”
According to TipRanks.com, Tsao is ranked #2794 out of 5163 analysts.
Currently, the analyst consensus on Chiasma is a Moderate Buy with an average price target of $11.50, implying a 210.8% upside from current levels. In a report issued on February 6, Brookline Capital Markets also initiated coverage with a Buy rating on the stock with a $12 price target.
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The company has a one-year high of $4.87 and a one-year low of $1.20. Currently, Chiasma has an average volume of 72.76K.
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Chiasma, Inc. operates as a clinical-stage biopharmaceutical company, which engages in developing and commercializing oral forms of therapies that are available by injection. Its products include octreotide capsules and clinical trials. The company’s Transient Permeability Enhancer (TPE) technology platform, seeks to develop oral medications.
