In a report released today, Debjit Chattopadhyay from H.C. Wainwright maintained a Buy rating on Mersana Therapeutics Inc (MRSN), with a price target of $7. The company’s shares closed on Friday at $4.52, close to its 52-week low of $2.85.
Chattopadhyay noted:
“Our 12-month, $7 (reduced from $14) price target is based on a 13-year DCF. Our DCF is based on a: beta of 1.55, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 10.5%, and tax rate of 15% beginning in FY 2027. Note the reduction in our target is primarily a reflection of: (1) company share dilution (closed on XMT-1522 discontinuation, offset by anticipated reduction in R&D to fund the XMT-1522 clinical program.”
According to TipRanks.com, Chattopadhyay is a 3-star analyst with an average return of 0.7% and a 45.0% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Autolus Therapeutics Plc.
Mersana Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $9.50, which is an 110.2% upside from current levels. In a report issued on March 8, Robert W. Baird also maintained a Buy rating on the stock with a $12 price target.
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The company has a one-year high of $23.96 and a one-year low of $2.85. Currently, Mersana Therapeutics Inc has an average volume of 199K.
Based on the recent corporate insider activity of 6 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 MRSN in relation to earlier this year.
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Mersana Therapeutics, Inc. engages in the development and manufacture of antibody drug conjugates to improve patient outcomes in multiple oncology indications. Its lead product candidates are XMT-1522, which focuses on breast cancer and non-small cell lung cancer (NSCLC); and XMT-1536, which targets ovarian cancer and NSCLC. The company was founded by Mikhail Papisov in 2001 and is headquartered in Cambridge, MA.
