H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Kala Pharmaceuticals Inc (NASDAQ: KALA) today and set a price target of $32. The company’s shares closed yesterday at $9.94, close to its 52-week low of $7.60.
Selvaraju said:
“Our 12-month price target is derived from a market value of the firm at $1.1B, which includes a discounted cash flow-based asset value of $1.1B for INVELTYS (100% probability of success) and KPI-121 0.25% (65% probability of success), with a 15% discount rate and 0.5% terminal growth rate.”
According to TipRanks.com, Selvaraju ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -5.7% and a 33.1% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, Synergy Pharmaceuticals Inc, and Bausch Health Companies Inc.
Kala Pharmaceuticals Inc has an analyst consensus of Strong Buy, with a price target consensus of $32.67, a 228.7% upside from current levels. In a report issued on October 4, Wells Fargo also reiterated a Buy rating on the stock with a $15 price target.
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The company has a one-year high of $22.10 and a one-year low of $7.60. Currently, Kala Pharmaceuticals Inc has an average volume of 364.1K.
Based on the recent corporate insider activity of 10 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 KALA in relation to earlier this year.
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Kala Pharmaceuticals, Inc. is a biopharmaceutical company, focused on the development and commercialization of therapeutics using proprietary nanoparticle-based Mucus Penetrating Particles, or MPP, technology, with an initial focus on the treatment of eye diseases.
