H.C. Wainwright analyst Debjit Chattopadhyay reiterated a Buy rating on Mersana Therapeutics Inc (MRSN) today and set a price target of $7. The company’s shares closed yesterday at $6, close to its 52-week low of $2.85.
Chattopadhyay said:
“We reiterate our Buy rating and our 12-month, $7 price target, which is based on a 12-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 10.0%, and tax rate of 15% beginning in FY 2027. Our model and target are primarily leveraged on Mersana’s wholly-owned XMT-1536 asset with a 25% POS, driven by the disclosure of preliminary dose escalation data on January 4, 2019.”
According to TipRanks.com, Chattopadhyay is a 2-star analyst with an average return of 0.1% and a 43.1% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Autolus Therapeutics Plc, and Voyager Therapeutics Inc.
Currently, the analyst consensus on Mersana Therapeutics Inc is a Moderate Buy with an average price target of $10, a 66.7% upside from current levels. In a report issued on May 9, Cowen & Co. also maintained a Buy rating on the stock.
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Based on Mersana Therapeutics Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $21.9 million. In comparison, last year the company had a GAAP net loss of $12.4 million.
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.
