Time to Load up on Atossa Shares? This Analyst Thinks So

The stock market, like any other industry, is riddled with clichés. One of the most commonly used is the ubiquitous “buy the rumor, sell the news.” However, clichés are not Read More... The post Time to Load up on Atossa Shares? This Analyst Thinks So appeared first on TipRanks Financial Blog.

Time to Load up on Atossa Shares? This Analyst Thinks So

The stock market, like any other industry, is riddled with clichés. One of the most commonly used is the ubiquitous “buy the rumor, sell the news.” However, clichés are not clichés without reason (another cliché...) and the old maxim could perfectly describe last week’s performance of Atossa Therapeutics () stock.

Since the end of April, shares had more than tripled in anticipation of the final results from the phase 2 clinical trial evaluating oral endoxifen, the biotech’s breast cancer treatment to be administered between diagnosis and surgery.

The company disclosed the results last week. With a 65.1% reduction in Ki-67 levels - a measure of tumor cell activity - the study met its primary endpoint. What’s more, all evaluated patients displayed a reduction of Ki-67 to levels below 25%, which shows the drug’s potential to improve long-term survival. The drug was also shown to be overall safe and well tolerated.

Next up, the company said it has initiated a formal non-clinical toxicology program, a prerequisite for the New Drug Application to gain endoxifen’s entry to market. The company will also seek the FDA’s approval to move to the next stage of the clinical testing in the U.S.

However, the shares dropped by 27% in the subsequent session, a clear case of the aforementioned "buy the rumor, sell the news,” says Maxim’s Jason McCarthy.

“Bottom line, is the data are positive and that there are no options for women during this period before surgery, a time in which the tumor can/will continue to grow,” the 5-star analyst said. “Additionally, with $138M in cash on the balance sheet as of 1Q21, the company has several years of runway and as such, we are lowering our discount rate to 25%, from 30%. With this much capital, Atossa should be able to continue to develop endoxifen in later stages.”

As a result, McCarthy also reduced the risk adjustment for endoxifen in the neoadjuvant breast cancer setting from 75% to 50%.

The implication for investors? McCarthy rates ATOS shares a Buy alongside a $7 price target. Shares could appreciate ~51%, should the analyst’s thesis play out in the coming months. (To watch McCarthy’s track record, )

Only one other analyst is currently tracking Atossa’s progress, also believing the stock is a Buy, both coalescing a Moderate Buy consensus rating. The Moderate Buy consensus rating is backed by a $7.5 average price target, suggesting one-year upside of 62%. (See ATOS 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 Time to Load up on Atossa Shares? This Analyst Thinks So appeared first on TipRanks Financial Blog.

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Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst

One of the early frontrunners in the race to get a Covid-19 vaccine to market, Novavax (NVAX) has encountered delays in getting its offering out to the public. But at Read More... The post Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst appeared first on TipRanks Financial Blog.

Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst

One of the early frontrunners in the race to get a Covid-19 vaccine to market, Novavax () has encountered delays in getting its offering out to the public. But at last the results are in from the U.S/Mexican Phase 3 trial for NVX-CoV2373, and they did not disappoint.

The vaccine was tested on almost 30,000 patients and displayed an overall efficacy rate of 90.4%, while also 100% effective in providing protection against moderate and severe disease.

Following strong sets of data from the U.K. and South African late-stage studies, B. Riley analyst Mayank Mamtani says the latest results could “meaningfully assuage investors' concerns.”

Since Novavax noted a 93.2% vaccine efficacy rate in 54 cases for which there was available data, Mamtani thinks investors were worried about the circulating variants of concern (VOC) and variants of interest (VOI) that were “theoretically perceived” to have negatively impacted the vaccine’s effectiveness. Those worries can now be laid to rest.

The vaccine maker intends to file for regulatory authorizations in Q3 and remains on target to hit a manufacturing capacity of 100 million doses per month by the end of the third quarter. By the end of 4Q21, that figure should increase to 150 million doses per month.

But now that Covid is on the backfoot and there are other just as effective solutions already available, is it too late for Novavax to make its mark? Not at all, say Mamtani.

“We believe an extremely compelling case could now be made from three independent large-scale, randomized, placebo-controlled trials in a total of ~50k subjects of '2373's highly potent, safe and well-tolerated product profile to serve as meaningfully disruptive to the fast-evolving C-19 vaccine global marketplace, constituting of the booster market in western economies increasingly driven by consumer choice, and a trusted, reliable vaccine option best suited for lower-middle income countries (LIMC) increasingly being adversely impacted by troublesome VOC/VOI,” the 5-star analyst explained.

To this end, Mamtani reiterates a Buy rating on NVAX shares along with a $286 price target. The analyst, therefore, expects shares to appreciate ~38% in the year ahead. (To watch Mamtani’s track record, )

The rest of the Street has a more conservative outlook; according to the $238.60 average price target, the forecast is for 12-month upside of 15%. Overall, based on 4 Buys and 2 Holds, the stock has a Moderate Buy consensus rating. (See NVAX 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 Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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