Chiasma (CHMA) Receives a Buy from H.C. Wainwright


H.C. Wainwright analyst Douglas Tsao maintained a Buy rating on Chiasma (CHMA) today and set a price target of $11. The company’s shares opened today at $7.35.

Tsao observed:

“Our $11 price target is based on our DCF valuation. Our DCF model utilizes a terminal rate of decline of 10%, and a WACC-based discount rate of 10.0% (Beta of 1.0, equity risk premium of 5.6%). We assume a 21% tax rate. We apply an 80% risk adjustment to our valuation to account for probability of success for the U.S. and European trials. We currently apply a negative terminal growth rate to account for potential launches by competitors. However, our valuation does not include potential new applications of Chiasma’s TPE platform technology.”

According to TipRanks.com, Tsao is a 2-star analyst with an average return of 0.7% and a 48.9% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Crinetics Pharmaceuticals Inc, Outlook Therapeutics Inc, and Protagonist Therapeutics.

Chiasma has an analyst consensus of Moderate Buy, with a price target consensus of $14.50, which is a 97.3% upside from current levels. In a report issued on July 10, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $18 price target.

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The company has a one-year high of $9.25 and a one-year low of $1.20. Currently, Chiasma has an average volume of 285.5K.

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Chiasma, Inc. operates as a clinical-stage biopharmaceutical company, which engages in developing and commercializing oral forms of therapies that are available by injection. Its products include octreotide capsules and clinical trials. The firm’s Transient Permeability Enhancer (TPE) technology platform, seeks to develop oral medications.

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