H.C. Wainwright Thinks Spectrum Pharmaceuticals’ Stock is Going to Recover


In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Spectrum Pharmaceuticals (SPPI), with a price target of $41. The company’s shares closed yesterday at $9.32, close to its 52-week low of $6.22.

White said:

“Our $41 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 2026, apply an 80% probability of success (POS) for poziotinib, a 75% POS for Rolontis, and our YE19 fully diluted net cash estimate of $1.93/share. We assume a 25% discount rate for the NPV of the pipeline and a P/S multiple of 3x. We use a 25% discount rate for the pipeline as it is above the marketed products discount rate due to development risks, but within the typical range of 15-25% for products in development.”

According to TipRanks.com, White is a 5-star analyst with an average return of 14.7% and a 48.5% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Aileron Therapeutics Inc, and Karyopharm Therapeutics.

Spectrum Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $26.33, which is a 182.5% upside from current levels. In a report released today, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $17 price target.

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Based on Spectrum Pharmaceuticals’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $49.22 million. In comparison, last year the company had a GAAP net loss of $15.82 million.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is neutral on the stock.

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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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