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Analysts at Bank of America Corp. started coverage on shares of Lexicon Pharmaceuticals (NASDAQ:LXRX) in a research report issued to clients and investors on Friday, Analyst Ratings News reports. The firm set an “underperform” rating and a $1.50 price target on the stock. Bank of America Corp.’s price target would indicate a potential downside of 22.88% from the company’s current price.

The analysts wrote, “We are initiating coverage of Lexicon Pharmaceuticals with an Underperform rating and $1.50 PO. The majority (>70%) of LXRX’s $1bn market cap is attributed to its pipeline asset LX4211, an SGLT 1/2 inhibitor, for Type II diabetes. The key to our Underperform thesis is that the market is significantly overvaluing this asset. We believe LX4211 will be differentiated from the competition on lower rates of urinary/genital infections and efficacy in renal-impaired patients but do not see this profile as strong enough to offset headwinds from its fifth-to-market entry. We assume LX4211 launches in 2017 and generates WW sales of $1.5bn in 2022 on 25% market share, with LXRX’s second pipeline asset, telotristat for carcinoid syndrome, generating $122mn in the same period. Despite these bullish estimates, we cannot get to the stock’s current valuation, which, all else equal, would imply LX4211 reaches peak sales of ~$2.2bn (implies 37.5% market share).”

Separately, analysts at Gabelli reiterated a “buy” rating on shares of Lexicon Pharmaceuticals in a research note to investors on Friday, October 11th.

Shares of Lexicon Pharmaceuticals (NASDAQ:LXRX) opened at 1.945 on Friday. Lexicon Pharmaceuticals has a 1-year low of $1.64 and a 1-year high of $3.18. The stock’s 50-day moving average is $2.33 and its 200-day moving average is $2.37. The company’s market cap is $998.8 million.

Lexicon Pharmaceuticals (NASDAQ:LXRX) last issued its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.01) by $0.05. The company had revenue of $0.24 million for the quarter, compared to the consensus estimate of $1.59 million. Analysts expect that Lexicon Pharmaceuticals will post $-0.22 EPS for the current fiscal year.

Lexicon Pharmaceuticals, Inc (NASDAQ:LXRX) is a biopharmaceutical company focused on the discovery and development of breakthrough treatments for human disease.

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