Brean Capital analyst Difei Yang sees great promise for the future of Relypsa Inc (NASDAQ:RLYP), as the pharmaceutical giant just delivered June results early- with all signs pointing favorably for hyperkalemia drug Veltassa.
If there was any doubt with prior trends, this new data could be a crucial turning point for not only Relypsa and prospective patients; the analyst also recognizes imminent, budding outcomes for investors. Yang contends, “If we see 2-3 more monthly data points confirming the trend, investors are likely to think about the long-term product potential and a fair valuation of the company is more likely to occur. We would be buyers at current levels.” In fact, Yang comments further that if this major growth maintains for just two to three more months, “we would be confident to call that the growth of Veltassa has entered into the hockey stick region of a new pharmaceutical product growth curve.”
The analyst reiterated a Buy rating on Relypsa with a price target of$26, marking a 20% upside from where the stock is currently trading.
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. Yang is ranked #3,592 out of 4,038 analysts on TipRanks, with a 45% success rate and an average loss of 3.2%.
According to TipRanks, 10 analysts rate Relypsa a Buy, while one rates the stock a Sell and one remains neutral. The average price target for the stock is $30.45 with a 40% upside.