H.C. Wainwright Sticks to Their Buy Rating for Spectrum Pharmaceuticals (SPPI)


In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Spectrum Pharmaceuticals (SPPI), with a price target of $42. The company’s shares closed yesterday at $10.81.

White said:

“We are lowering our price target to $42 from $43, due to our lower year end cash per share estimate caused by our higher share count and expense assumptions. Our $42 price target is based on a sum-of-the-parts analysis based on probability adjusted revenue forecasts for poziotinib and Rolontis. We use the net present value of our revenue forecast through 2025, apply an 80% probability of success (POS) for poziotinib, a 75% POS for Rolontis, and our YE19 fully diluted net cash estimate of $1.70/share. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 3x.”

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, Synthetic Biologics Inc, and Karyopharm Therapeutics.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Spectrum Pharmaceuticals with a $27.33 average price target, a 152.8% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $19 price target.

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Based on Spectrum Pharmaceuticals’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $68.72 million. In comparison, last year the company had a GAAP net loss of $28.56 million.

Based on the recent corporate insider activity of 67 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 SPPI in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Spectrum Pharmaceuticals, Inc. is a biotechnology company, which engages in the acquisition, development, and commercialization of pipeline of late-stage clinical and commercial products. It operates through the following brands: FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA. The company was founded in December 1987 and is headquartered in Henderson, NV.

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