Stifel Nicolaus Upgrades Zogenix to “Buy” (ZGNX)
Zogenix (NASDAQ:ZGNX) was upgraded by investment analysts at Stifel Nicolaus from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $5.00 target price on the stock. Stifel Nicolaus’ target price would indicate a potential upside of 67.79% from the stock’s previous close.
The analysts wrote, “Following Zohydro’s approval Friday, Zogenix updated its commercialization/partnership plans going forward. Though there are several moving parts with regard to strategy, Zogenix remains prepared to move forward independently and any partnership going forward would be with strict intent of enhancing value. Thus, as a base we assume that Zogenix will work to build its sales force to ~150 reps, financed with the remainder of its ATM of $22.7mn. Within weeks, we should gain clarity on the certainty of a partnership, which we view as an upside scenario as it should come with upfront fees (non-dilutive financing), some shared expense, and payment to partner based on sales levels in its designated territory. As a base, though, we assume a ‘go-it-alone’ strategy, which yields a value of up to ~$5, assuming on a non-probability weighted sales outlook of $185mn. We upgrade to Buy as momentum builds into possible partnership.”
Separately, analysts at William Blair raised their price target on shares of Zogenix from $3.00 to $6.00 in a research note to investors on Monday. They now have an “outperform” rating on the stock. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $5.33.
Shares of Zogenix (NASDAQ:ZGNX) traded up 3.11% on Tuesday, hitting $2.98. The stock had a trading volume of 4,583,310 shares. Zogenix has a 52 week low of $1.11 and a 52 week high of $3.30. The stock’s 50-day moving average is $1.65 and its 200-day moving average is $1.64. The company’s market cap is $305.0 million.
Zogenix (NASDAQ:ZGNX) last posted its quarterly earnings results on Thursday, August 8th. The company reported ($0.13) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.15) by $0.02. The company had revenue of $8.90 million for the quarter, compared to the consensus estimate of $8.63 million. During the same quarter in the prior year, the company posted ($0.26) earnings per share. The company’s quarterly revenue was up 11.3% on a year-over-year basis. On average, analysts predict that Zogenix will post $-0.53 earnings per share for the current fiscal year.
Zogenix, Inc (NASDAQ:ZGNX) is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain.
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