Oppenheimer Thinks KemPharm’s Stock is Going to Recover


Oppenheimer analyst Esther Rajavelu maintained a Buy rating on KemPharm (KMPH) today and set a price target of $10. The company’s shares opened today at $2.32, close to its 52-week low of $2.00.

Rajavelu said:

“We updated our model to reflect some dilution from Series A preferred stock conversion and impact from 3Q18 earnings. Series A conversion of $6.2M added an incremental 2.08M common shares. Our updated 2018 and 2019 EPS estimates are -$4.04 (vs. -$3.56) and -$1.61 (vs. -$1.55), respectively. We maintain our Outperform rating and lower our price target to $10 (vs. $11), primarily due to incremental share count from the conversion. Having executed on key goals including a manufacturing/ distribution partnership for Apadaz, completion of the registration-enabling KP415 trial, and an equity raise, we believe the company is well positioned to continue leveraging its LAT technology to expand its pipeline.”

According to TipRanks.com, Rajavelu is a 1-star analyst with an average return of -10.1% and a 9.1% success rate. Rajavelu covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, Aerie Pharma, and Teva Pharma.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for KemPharm with a $10 average price target.

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The company has a one-year high of $8.40 and a one-year low of $2.00. Currently, KemPharm has an average volume of 276.8K.

Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KMPH in relation to earlier this year.

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KemPharm, Inc. is a clinical-stage specialty pharmaceutical company, which engages in the discovery and development of proprietary prodrugs. It focuses in the treatment of serious medical conditions such as attention deficit hyperactivity disorder, pain, and other central nervous system disorders through its platform technology known as Ligand Activated Therapy. The company was founded by Christal M. M. Mickle and Travis C. Mickle on October 30, 2006 and is headquartered in Coralville, IA.

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