In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on TrovaGene (NASDAQ: TROV), with a price target of $2.50. The company’s shares closed yesterday at $0.80, close to its 52-week low of $0.79.
“Valuation and risks. Our price target is derived from a discounted cash flow-based asset value of $101M for PCM-075, using a 15% discount rate and 2% terminal growth rate, with a 25% probability of success. Our valuation currently excludes use of PCM-075 in non-AML indications such as prostate cancer. Clinical updates in such indications may drive upside to our price target. Risks include: (1) failure of PCM-075 in clinical trials; (2) failure of PCM-075 to secure regulatory approval; (3) failure of PCM-075 to achieve commercial success due to reimbursement, penetration rate, and/or competition; and (4) dilution risk.”
According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -1.9% and a 38.1% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TrovaGene with a $2.75 average price target, a 243.3% upside from current levels. In a report issued on June 15, Maxim Group also upgraded the stock to Buy with a $3 price target.
Based on TrovaGene’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $4.79 million. In comparison, last year the company had a GAAP net loss of $10 million.
Based on the recent corporate insider activity of 22 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 TROV in relation to earlier this year.
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Trovagene, Inc. is a clinical-stage, precision medicine oncology therapeutics company. Its focuses on developing PCM-075, is a Polo-like Kinase 1 (PLK1) selective adenosine triphosphate (ATP) competitive inhibitor.
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