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H.C. Wainwright Thinks Stemline Therapeutics Inc’s Stock is Going to Recover


H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Stemline Therapeutics Inc (STML) today and set a price target of $38. The company’s shares closed yesterday at $10.17, close to its 52-week low of $9.98.

Selvaraju said:

“Our 12-month price target is derived from a discounted cash flow-based asset value of $1.2B for 15% discount rate and 2% terminal growth rate. Probabilities of success ascribed to SL-401 and SL-701 are 90% and 45%, respectively. Investment risks include: (1) failure of drug candidates in clinical trials; (2) failure of drug candidates to secure regulatory approval; (3) failure of drug candidates to achieve commercial success due to market size, penetration rate, and/or competition; and (4) potential dilution risk.”

According to TipRanks.com, Selvaraju has 0 stars on 0-5 star ranking scale with an average return of -16.9% and a 23.0% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, Bausch Health Companies Inc, and Aerpio Pharmaceuticals Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Stemline Therapeutics Inc with a $30.80 average price target, representing a 202.9% upside. In a report issued on November 26, Piper Jaffray also initiated coverage with a Buy rating on the stock with a $20 price target.

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Based on Stemline Therapeutics Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $21.04 million. In comparison, last year the company had a GAAP net loss of $16.06 million.

Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock.

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Stemline Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the discovery, acquisition, development, and commercialization of novel therapeutics for oncology indications of unmet medical need. Its clinical stage product candidates include SL-401, SL-801, and SL-701.

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