H.C. Wainwright analyst Oren Livnat reiterated a Buy rating on Collegium Pharmaceutical (COLL) today and set a price target of $23. The company’s shares closed yesterday at $14.05, close to its 52-week low of $13.10.
Livnat observed:
“We view that as legitimate, fundamental upside, and a reflection of broadened payer coverage (12 new exclusive contracts) and prescription demand, and it should portend Rx growth going forward. We think it prudent to model Xtampza ER conservatively going forward, as GTN discounts should increase a bit and, the retail pull-through surplus should narrow. So while we still model strong 15% sequential volume growth in 2Q, we see flattish 2Q $25.3M sales, reflecting a 14% lower $209/Rx. That 2Q number is still a solid 7% raise from our prior estimate, as pharmacy additions should continue, and we raise our full-year Xtampza ER sales to $103.8M from $95.5M. All in, things are going according to plan, and we continue to see Collegium as undervalued, reflecting too harsh a discount for negative opioid sentiment.”
According to TipRanks.com, Livnat is a 4-star analyst with an average return of 11.5% and a 52.5% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Taiwan Liposome Company Ltd, and Zynerba Pharmaceuticals.
Currently, the analyst consensus on Collegium Pharmaceutical is a Strong Buy with an average price target of $29, which is a 106.4% upside from current levels. In a report issued on April 26, Cantor Fitzgerald also maintained a Buy rating on the stock with a $35 price target.
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Based on Collegium Pharmaceutical’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $9.09 million. In comparison, last year the company had a GAAP net loss of $18.65 million.
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Collegium Pharmaceutical, Inc. operates as a pharmaceutical company, which engages in the developing and planning to commercialize next generation, abuse-deterrent products for the treatment of patients suffering from chronic pain and other diseases.
