In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Spectrum Pharmaceuticals (SPPI), with a price target of $40. The company’s shares closed on Tuesday at $13.07, close to its 52-week low of $11.52.
White observed:
“Our $40 price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.49 per share, the pipeline at $12.24 per share, and YE18 estimated fully diluted net cash of $1.33 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.10, discounted at 15%. We assume a 20% 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 15.3% and a 44.6% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.
Currently, the analyst consensus on Spectrum Pharmaceuticals is a Moderate Buy with an average price target of $34.50.
See today’s analyst top recommended stocks >>
Based on Spectrum Pharmaceuticals’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $68.72 million. In comparison, last year the company had a GAAP net loss of $18.71 million.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is neutral on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
