H.C. Wainwright analyst Debjit Chattopadhyay maintained a Buy rating on Summit Therapeutics (NASDAQ: SMMT) today and set a price target of $3. The company’s shares closed yesterday at $2.13, close to its 52-week low of $1.94.
Chattopadhyay noted:
“Our $3/share based on a risk-adjusted DCF analysis and is leveraged on the prospects of ridinilazole. Our assumed 65% POS for ridinilazole is in line with historic Phase 3 success rates for anti-infective trials, with perpetuity growth rate of 0.5%, WACC of 7.3%, beta of 0.90 and tax rate of 17% beginning in YR2030. Risks to our target include: (1) clinical study failure; (2) regulatory risks; (3) commercial and competitive risks; and (4) significant financing risks.”
According to TipRanks.com, Chattopadhyay is a 3-star analyst with an average return of 1.4% and a 46.5% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Mersana Therapeutics Inc.
Summit Therapeutics has an analyst consensus of Moderate Buy, with a price target consensus of $3.33, which is a 56.3% upside from current levels. In a report issued on August 16, Canaccord Genuity also maintained a Buy rating on the stock with a $3 price target.
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Based on Summit Therapeutics’ latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $8.17 million. In comparison, last year the company had a net profit of $14.1 million.
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Summit Therapeutics Plc is a holding company, which engages in the discovery, development, and commercialization of novel medicines. It focuses on the genetic disease duchenne muscular dystrophy, and the infectious disease clostridium difficile infection.
