Oppenheimer Maintains a Buy Rating on CymaBay Therapeutics (CBAY)


Oppenheimer analyst Jay Olson maintained a Buy rating on CymaBay Therapeutics (CBAY) today and set a price target of $18. The company’s shares closed yesterday at $9.77.

Olson commented:

“Seladelpar (PPARδ agonist) received Breakthrough Therapy Designation (BTD) in PBC post urso. We view the FDA’s designation as a recognition of PBC as a serious condition for which new treatments are still urgently needed despite use of urso and OCA and as validation of Ph2 data quality. Seladelpar has previously received EMA PRIority MEdicine (PRIME) designation, EU equivalent of breakthrough therapy designation. The pivotal Ph3 ENHANCE study is enrolling. We view the 2L PBC opportunity post urso failure as crowded with Ocaliva (ICPT), and several molecules in development: seladelpar (CBAY), elafibranor (GNFT), EDP-305 (ENTA), bezafibrate and others. Consequently, we believe only first-in-class compounds have a chance in PBC going forward and BTD is an additional validation of seladelpar’s profile.”

According to TipRanks.com, Olson is ranked 0 out of 5 stars with an average return of -5.2% and a 39.8% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Conatus Pharmaceuticals, and Enanta Pharmaceuticals.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for CymaBay Therapeutics with a $17.50 average price target, a 79.1% upside from current levels. In a report issued on February 1, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $20 price target.

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Based on CymaBay Therapeutics’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $18.56 million. In comparison, last year the company had a GAAP net loss of $5.04 million.

Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Carl Goldfischer, a Director at CBAY sold 11,675 shares for a total of $105,309.

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CymaBay Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the research and development of biopharmaceutical products. Its products include MBX-8025 and Arhalofenate, MBX-8025 aims to treat lipid and liver diseases while Arhalofenate intends to reduce gout flares and serum uric acid.