In a report released today, Leland Gershell from Oppenheimer maintained a Buy rating on Recro Pharma (REPH), with a price target of $15. The company’s shares closed yesterday at $6.52.
Gershell observed:
“With its announced plan to restructure its Acute Care Segment, which should enable REPH to become cash flow positive in 2H19 by virtue of its growing CDMO business, we believe the company is taking rational steps toward rebuilding equity value following IV meloxicam’s 2nd CRL. While this candidate retains potential to provide returns as strategic partnerships are explored, we anticipate the corporate re-positioning will cause REPH to trade in greater accordance to pure-play CDMO industry peer multiples, which imply a substantially higher share price to current levels. We’ve revised our model to reflect the updated business plan, and raise our price target to $15 (from $9).”
According to TipRanks.com, Gershell is a 4-star analyst with an average return of 14.3% and a 54.2% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Anchiano Therapeutics Ltd, Miragen Therapeutics Inc, and Avenue Therapeutics Inc.
Currently, the analyst consensus on Recro Pharma is a Strong Buy with an average price target of $11.13, representing a 70.7% upside. In a report issued on March 25, Piper Jaffray also reiterated a Buy rating on the stock with a $9 price target.
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Based on Recro Pharma’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $41.3 million. In comparison, last year the company had a GAAP net loss of $12.46 million.
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Recro Pharma, Inc. is a pharmaceutical company, which engages in the research and development of non-opioid therapeutics for the treatment of acute post operative pain. It operates through the Acute Care, and Contract Development and Manufacturing (CDMO) business segment.
