Why Did WBB Securities Upgrade Cidara Therapeutics’ Stock?

WBB Securities analyst Stephen Brozak upgraded Cidara Therapeutics (NASDAQ: CDTX) to Buy today and set a price target of $6.25. The company’s shares closed yesterday at $4.90.

Brozak wrote:

“We believe in the current capital markets, strengthening balance sheets is essential, especially for development- stage companies like CDTX which plans to initiate large, late stage trials. The company has properly recognized this opportunity as apparent by this most recent offering. We also look at the new partnership with Rutgers University as a potential opportunity to deleverage the entity entirely on rezafungin’s performance. That being said, we have confidence in rezafungin’s value in the anti-infectives space and look forward to CDTX’s initiation of their two Phase 3 trials. We therefore upgrade our rating of CDTX from and maintain our twelve-month price target of $6.25.”

Brozak has an average return of 28.6% when recommending Cidara Therapeutics.

According to TipRanks.com, Brozak is ranked #899 out of 4799 analysts.

Currently, the analyst consensus on Cidara Therapeutics is Moderate Buy and the average price target is $14.50, representing a 195.9% upside.

In a report issued on May 10, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $15 price target.

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The company has a one-year high of $8.80 and a one-year low of $3.70. Currently, Cidara Therapeutics has an average volume of 274.5K.

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Cidara Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the research and development of anti-infectives for the treatment of fungal infections. Its portfolio includes CD101 IV, CD101 Topical, and Cloudbreak. The company was founded by Kevin M. Forrest, Kevin J. Judice, and H. Shaw Warren in December 2012 and is headquartered in San Diego, CA.