Analyst Doubles Down Bet on Nasdaq's Hottest Stock

Let's be honest: Despite its catchy stock ticker -- "LIFE" -- you've probably never heard of aTyr Pharma (LIFE). Or at least, you probably never had heard of aTyr Pharma Read More... The post Analyst Doubles Down Bet on Nasdaq's Hottest Stock appeared first on TipRanks Financial Blog.

Analyst Doubles Down Bet on Nasdaq's Hottest Stock

Let's be honest: Despite its catchy stock ticker -- "LIFE" -- you've probably never heard of aTyr Pharma (). Or at least, you probably never had heard of aTyr Pharma before Monday, September 13, 2021. But if you know anyone who owns the stock, you may not soon hear about anything other than aTyr Pharma for a while.

That's because aTyr Pharma -- which up until this week was a $90 million biotech startup with just $2.2 million in revenue (and $29.1 million in losses) to its name -- exploded to the top of the stock charts on Monday, surging 67%, making it the top-performing stock on the Nasdaq.

What's with all the commotion? In a note out yesterday, Jones Trading analyst Prakhar Agrawal broke it down for us, explaining that aTyr stock exploded higher because the company "announced positive topline results" from a Phase 1B/2A trial of its ATYR1923 therapy for treating patients afflicted with Pulmonary Sarcoidosis (PS), a form of interstitial lung disease.

aTyr said that clinical trial results showed ATYR1923 was "safe and well-tolerated at all doses with no drug-related serious adverse events or signal of immunogenicity," and that the drug demonstrated "key efficacy endpoints and improvements [on] measures of steroid reduction, lung function, sarcoidosis symptom measures and inflammatory biomarkers."

Commenting on the news, Agrawal first cautions that "this trial was proof-of-concept" and may not have "statistical significance" at this point. Nevertheless, the analyst observed that use of ATYR1923 resulted in improved lung function despite "tapering" of steroids administered, and generated "clinically meaningful improvement... in all other symptom endpoints (cough, fatigue, dyspnea)" -- all "with no drug related [adverse events or] immunogenicity" (i.e. unwanted immune response).

"Net-Net," says the analyst, aTyr's "data are very strong... exceeding expectations & safety looks clean." And in the analyst's opinion, this sets up aTyr to proceed to a more statistically significant trial "next year," involving "~200 patients" and with the trial lasting "possibly by 9-12 months."

Accordingly, Agrawal is doubling down on his "buy" rating on aTyr stock, and raising his price target on the shares by a third, to $20 -- implying the stock could still double from here, even after the recent run-up.

That's where he expects the stock to sit a year from now, at least. As for aTyr's long-term future, Agrawal expects the company will begin generating revenues in 2025, but continue to report losses through 2026. Only in 2027, as revenues pass the $100 million-mark, does he see aTyr generating meaningful GAAP profits (about $0.21 per share).

If that seems a long time to wait, though, then consider this: After turning profitable in 2027, Agrawal predicts that aTyr will rapidly ramp profits, and indeed grow them about 20x in three years, ultimately earning nearly $4 a share on $360 million in revenue in 2030.

Overall, there are 5 recent analyst reviews on LIFE, and they are unanimously positive, giving the stock its Strong Buy consensus rating. The shares are priced at $9, with a $19.67 average price target that suggests ~119% upside for the next 12 months. (See LIFE stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Analyst Doubles Down Bet on Nasdaq's Hottest Stock appeared first on TipRanks Financial Blog.

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"Check Out What Amazon's Up To Now!" Says BofA

Wasn't Amazon.com (AMZN) supposed to be an online retailer? Because we distinctly recall hearing at some point that Amazon.com sold stuff online... and yet it's what Amazon's doing offline that Read More... The post "Check Out What Amazon's Up To Now!" Says BofA appeared first on TipRanks Financial Blog.

"Check Out What Amazon's Up To Now!" Says BofA

Wasn't Amazon.com () supposed to be an online retailer? Because we distinctly recall hearing at some point that Amazon.com sold stuff online... and yet it's what Amazon's doing offline that earned it a re-recommendation from Bank of America analyst Justin Post.

In a note reiterating his "buy" recommendation and $4,250 price target on Amazon, Post explains that "Amazon is building an 'omni-channel POS solution' that includes its own point-of-sale (POS) hardware and software." And yet, by definition, point-of-sale hardware is equipment used to check out a customer at a physical retail location.

In case you have not yet heard, Amazon -- the world's biggest e-tailer -- also has developed quite a number of physical retail locations at which it might install this new "omni-channel POS solution." Amazon's physical businesses include: Amazon Books stores, Amazon 4-Star department stores, Amazon Pop Up stores, and Amazon Fresh, Amazon Go, and Amazon Go Grocery grocery stores too. (Oh, and Whole Foods, of course).

In addition to all of those potential outlets at Amazon proper, Post says Amazon is now looking to sell its new "omni-channel POS solution" to third party retailers as well.

As Post observes, Amazon seems to have developed its new solution as "a response to [the Covid] pandemic and Shopify" as well.

Shopify -- also originally an online phenomenon -- has been promoting its own point of sale system lately with a free trial for business customers. Amazon may see Shopify's offering as a threat to its own sales, because, as Post explains, "the pandemic has created a greater sense of urgency by local businesses (SMBs) to add multi-channel sales capabilities, and growing number of merchants have been adopting third party services, including Shopify and Google search, to help sell directly to consumers."  

Post notes that there may initially be "resistance" to Amazon's offering from local businesses that will have "competitive concerns" about letting the fox into the hen house. In the analyst's view, however, "the opportunity is big" enough for Amazon to risk taking a flyer on this and see if it sticks.

Consider that an Amazon-branded POS system could offer customers the ability to "add Amazon check-out options," and "even allow customers to pay with their Amazon accounts at retail locations." If Amazon is able to capture sales data from transactions run through its POS system (as seems likely, and maybe even the whole point), it could yield valuable data for Amazon on other companies' stores' "inventory and business analytics." Amazon would presumably want to re-package this data to provide "customer data management for SMBs" as a service. But Amazon will probably also integrate sales data run through its devices into its own internal data troves as well, the better to understand which products are selling, where, and to whom -- so as to better optimize its own product offerings online.

Because in case you have forgotten by now, Amazon was originally and remains in large part today... an online retailer.

Overall, Wall Street likes Amazon, a fact clear from the 32 unanimous Buy ratings on record. The forecast is for one-year gains of ~22%, given the average price target currently stands at $4,225.13. (See AMZN stock analysis on TipRanks)

To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post "Check Out What Amazon's Up To Now!" Says BofA appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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