Strongbridge Biopharma Plc (SBBP) Received its Third Buy in a Row


After Cantor Fitzgerald and Oppenheimer gave Strongbridge Biopharma Plc (NASDAQ: SBBP) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Andrew Fein reiterated a Buy rating on Strongbridge Biopharma Plc today and set a price target of $18. The company’s shares closed yesterday at $5.90.

Fein said:

“Our price target of $18/share is based on an equally weighted composite of: (a) $22.04/share, as a 35x multiple of taxed and diluted FY25 GAAP EPS of $4.26 discounted back to FY18 at 27%;and (b) an NPV of $13.77/ share (discount rate 14%, growth rate 2.5%). Risks to our investment thesis and target price include: (1) failure of Recorlev in clinical studies; (2) failure of Recorlev to secure regulatory approval; cand (3) failure of Recorlev and/or Keveyis to achieve peak commercial revenue estimates in our model due to market size, penetration size, and/or pricing.”

According to TipRanks.com, Fein is a 3-star analyst with an average return of 2.5% and a 46.8% success rate. Fein covers the Healthcare sector, focusing on stocks such as Proteostasis Therapeutics Inc, Cyclacel Pharmaceuticals, and Vertex Pharmaceuticals.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Strongbridge Biopharma Plc with a $17.50 average price target, a 196.6% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $17 price target.

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Based on Strongbridge Biopharma Plc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $28.72 million. In comparison, last year the company had a GAAP net loss of $30.19 million.

Based on the recent corporate insider activity of 9 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 SBBP in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Strongbridge Biopharma Plc operates as a commercial-stage biopharmaceutical company, which focuses on the development and commercialization of therapies for rare diseases. Its pipeline is comprised of Keveyis, Macrilen, Recorlev, and Veldoreotide. The company was founded on May 26, 2015 and is headquartered in Lower Southampton, PA.

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