Verastem Received its Third Buy in a Row


After H.C. Wainwright and B.Riley FBR gave Verastem (NASDAQ: VSTM) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Leah R. Cann maintained a Buy rating on Verastem today and set a price target of $11. The company’s shares opened today at $7.41.

Cann noted:

“Our outlook for revenue and operating income for 2018-22 remains unchanged. We are increasing our estimated interest income to account for higher cash balances from the underwritings and decreasing interest expense due to removing the previous need for debt to finance the company’s development programs. We are increasing the shares outstanding to account for the dilution from the two underwritings.”

According to TipRanks.com, Cann is a 5-star analyst with an average return of 25.0% and a 62.1% success rate. Cann covers the Healthcare sector, focusing on stocks such as Miragen Therapeutics Inc, CytomX Therapeutics Inc, and Crispr Therapeutics AG.

Currently, the analyst consensus on Verastem is Strong Buy and the average price target is $14.60, representing a 97.0% upside.

In a report issued on June 6, H.C. Wainwright also maintained a Buy rating on the stock with a $10 price target.

See today’s analyst top recommended stocks >>

Based on Verastem’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $21.05 million. In comparison, last year the company had a GAAP net loss of $13.01 million.

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Verastem, Inc. is a biopharmaceutical company, which engages in the development and commercialization of drugs to treat cancer by the targeted killing of cancer stem cells. Its product candidates include duvelisib, which targets the Phosphoinositide 3-kinase signaling pathway; and defactinib, a targeted inhibitor of the Focal Adhesion Kinase signaling pathway. It evaluates these compounds in both preclinical and clinical studies as potential therapies for certain cancers, including leukemia, lymphoma, lung cancer, ovarian cancer, mesothelioma, and pancreatic cancer. The company was founded by Richard H. Aldrich, Michelle Dipp, Piyush Gupta, Satish Jindal, Eric S. Lander, Robert F. Weinberg and Christoph H. Westphal on August 4, 2010 and is headquartered in Cambridge, MA.

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