In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on La Jolla Pharma (LJPC), with a price target of $25. The company’s shares closed yesterday at $5.45, close to its 52-week low of $5.01.
“We are reducing our price target to $25, from $48, due to lower Giapreza sales expectations partially offset by cost cutting expectations in R&D and SG&A. We base our $25 price target on a sum-of-the-parts analysis based on: (1) the P/E value of La Jolla’s current commercial business (Giapreza); (2) an NPV of its pipeline (LJPC-401); and (3) our estimated year- end fully diluted net cash of $4.03/share, which includes the capital raise earlier this year and the royalty agreement, to arrive at our price target. We value the current commercial business at $9.82 per share and the pipeline at $10.83 per share.”
According to TipRanks.com, White is a 5-star analyst with an average return of 13.9% and a 45.7% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
Currently, the analyst consensus on La Jolla Pharma is a Moderate Buy with an average price target of $30.33, implying a 456.5% upside from current levels. In a report issued on January 7, Cowen & Co. also maintained a Buy rating on the stock with a $30 price target.
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The company has a one-year high of $41.36 and a one-year low of $5.01. Currently, La Jolla Pharma has an average volume of 673.6K.
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La Jolla Pharmaceutical Co. operates as a biopharmaceutical company, which engages in the discovery, development and commercialization of therapies intended to significantly improve outcomes in patients suffering from life-threatening diseases. Its products includes LJPC-501, LJPC-401, LJPC-30Sa and LJPC-30Sb.
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