In a report released today, Steven Lichtman from Oppenheimer initiated coverage with a Buy rating on Valeritas (NASDAQ: VLRX) and a price target of $3.50. The company’s shares closed on Tuesday at $1.35, close to its 52-week low of $1.19.
Lichtman commented:
“We initiate coverage of Valeritas Holdings (VLRX) with an Outperform rating and $3.50 PT. VLRX is a pure play in the insulin delivery device market for Type 2 diabetes with its discrete, easy-to-use, insulin delivery platform, V-Go. Data are supportive in Type 2 patients who are not at targeted glucose control showing improvements in control and reduced insulin needs. With a new, more-focused salesforce in place and international expansion opportunities ahead, we look for >30% growth over the next few years. Work remains to transition the market from multiple daily injections to pump therapy and gross margin expansion is key ahead to reach cash flow breakeven, but we view the current <1x 2019 EV/sales multiple as an attractive entry point."
According to TipRanks.com, Lichtman has 0 stars on 0-5 star ranking scale with an average return of -2.7% and a 53.1% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Motus Gi Holdings Inc, Integra Lifesciences, and Wright Medical Group.
Valeritas has an analyst consensus of Moderate Buy, with a price target consensus of $3.50.
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Based on Valeritas’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $11.57 million. In comparison, last year the company had a GAAP net loss of $11.98 million.
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Valeritas Holdings, Inc. engages in the development of innovative technologies to improve the health and quality of life of people. It offers products under the V-Go brand. V-Go Disposable Insulin Delivery Device, is used by patients with type 2 diabetes to maintain target blood glucose goals.
