In a report released today, Swayampakula Ramakanth from H.C. Wainwright reiterated a Buy rating on Verastem (VSTM), with a price target of $10. The company’s shares closed yesterday at $3.35, close to its 52-week low of $2.61.
Ramakanth observed:
“We maintain our Buy rating of VSTM and lower our 12-month price target to $10.00 per share, down from $13.00. We derive our price target based on the average of two valuation methods: 1) price-sales multiple analysis applying an 8x multiple to our 2025 sales estimate discounted at 12%; and 2) price-earnings multiple analysis applying an 18x multiple to our 2025 estimated earnings discounted at 12%. (1) clinical; (2) regulatory; (3) financial; (4) commercial; and (5) intellectual property.”
According to TipRanks.com, Ramakanth is a 1-star analyst with an average return of -1.3% and a 37.7% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Collplant Holdings Ltd, Gritstone Oncology Inc, and Leap Therapeutics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Verastem with a $12 average price target, which is a 258.2% upside from current levels. In a report released yesterday, Roth Capital also maintained a Buy rating on the stock with a $14 price target.
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Based on Verastem’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $11.35 million. In comparison, last year the company had a GAAP net loss of $18.24 million.
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Verastem, Inc. is a commercial-stage company focused on the discovery, development, and commercialization of drugs to aid patients suffering from cancer. Its product candidates include COPIKTR (duvelisib), a treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma after at least two prior systemic therapies. Its pipeline candidate defactinib, is a focal adhesion kinase inhibitor in development for the treatment of cancers where there are limited treatment options including lung, ovarian, lymphoma, pancreatic and other advanced cancers. The company was founded by Richard H. Aldrich, Michelle Dipp, Piyush Gupta, Satish Jindal, Eric S. Lander, Robert F. Weinberg, and Christoph H. Westphal on August 4, 2010 and is headquartered in Needham, MA.
