H.C. Wainwright analyst Oren Livnat reiterated a Buy rating on Zynerba Pharmaceuticals (ZYNE) today and set a price target of $23. The company’s shares closed last Monday at $8.28.
Livnat said:
“Our $23 target is based on just a 35% probability of success weighted DCF including just Zygel (formerly ZYN002) in Fragile X Syndrome (FXS) assuming 1H21 approval and peak $700M U.S. sales. Our DCF includes a 13.5% WACC discount, and negative 5% terminal decline beyond 2028 balancing the loss of potential orphan exclusivity with newly issued IP out to 2038. All else equal, if entirely de-risked, our DCF yields a much higher Zynerba valuation of $66/share, or a $1.7B equity value. Zynerba had $88.7M cash at end-2Q19 and no debt.”
According to TipRanks.com, Livnat is a 4-star analyst with an average return of 10.7% and a 54.8% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Taiwan Liposome Company Ltd, and Collegium Pharmaceutical.
Currently, the analyst consensus on Zynerba Pharmaceuticals is a Strong Buy with an average price target of $19.50, a 122.3% upside from current levels. In a report released yesterday, Ladenburg Thalmann & Co. also maintained a Buy rating on the stock with a $26 price target.
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Based on Zynerba Pharmaceuticals’ latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $11.14 million. In comparison, last year the company had a GAAP net loss of $12.01 million.
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Zynerba Pharmaceuticals, Inc. operates as a clinical stage specialty pharmaceutical company. It engages in the development and commercialization of transdermal pharmaceutically-produced cannabinoid treatments for rare and near-rare neurological and psychiatric, or neuropsychiatric, disorders in patients with high unmet medical needs.
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