In a report released today, Leland Gershell from Oppenheimer maintained a Buy rating on Recro Pharma (REPH), with a price target of $19. The company’s shares closed on Friday at $9.42.
Gershell wrote:
“As we approach IV meloxicam’s 3/24 PDUFA, we have modeled a few scenarios for REPH keyed to the regulatory outcome, and their respective valuations. As REPH is composed of both an R&D-stage acute care division as well as a revenue-generating CDMO division, we believe this exercise is particularly instructive. Per our projections, we see shares worth $20 if IVM is approved and commercialized, and $12 if IVM receives a 2nd CRL. We assign a 90% likelihood to approval, which implies our $19 PT. While the stock has continued to show strength as the PDUFA nears, at current levels we continue to see it as undervalued, irrespective of the regulatory action.”
According to TipRanks.com, Gershell is a 1-star analyst with an average return of -0.8% and a 41.5% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Evofem Biosciences Inc, AzurRx BioPharma Inc, and Urogen Pharma Ltd.
Currently, the analyst consensus on Recro Pharma is a Moderate Buy with an average price target of $16.
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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 $24.08 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.
