H.C. Wainwright analyst Edward White maintained a Buy rating on Spectrum Pharmaceuticals (SPPI) today and set a price target of $41. The company’s shares closed on Friday at $7.94, 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.”
According to TipRanks.com, White is a 5-star analyst with an average return of 15.7% and a 49.0% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Aeglea Biotherapeutics Inc, and Aileron Therapeutics Inc.
Spectrum Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $24.50, which is a 208.6% upside from current levels. In a report issued on May 13, Guggenheim also initiated coverage with a Buy rating on the stock with a $19 price target.
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The company has a one-year high of $25.29 and a one-year low of $6.22. Currently, Spectrum Pharmaceuticals has an average volume of 883.8K.
Based on the recent corporate insider activity of 57 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.
