H.C. Wainwright Thinks Abeona Therapeutics’ Stock is Going to Recover

By Jason Carr

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Abeona Therapeutics (ABEOResearch Report) today and set a price target of $30. The company’s shares closed yesterday at $8.15, close to its 52-week low of $6.94.

Selvaraju noted:

“Valuation methodology, risks and uncertainties. We ascribe a total risk-adjusted net present value (rNPV) of $1.44B to Abeona’s technology platforms, which yields a price per share of $30.00 based on about 50M shares outstanding as of end-3Q 2019. We utilize an 85% probability of success for EB-101. Risks include, but are not limited to: (1) slower-than-anticipated clinical trial progress; (2) trial failures; (3) slower-than-projected timelines for drug approvals; and (4) poor uptake of the firm’s products once introduced.”

According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -16.9% and a 23.0% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, Bausch Health Companies Inc, and Aerpio Pharmaceuticals Inc.

Abeona Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $27.25, representing a 234.4% upside. In a report issued on November 26, Mizuho Securities also maintained a Buy rating on the stock with a $17 price target.

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Based on Abeona Therapeutics’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $16.42 million. In comparison, last year the company had a GAAP net loss of $5.34 million.

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Abeona Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development of gene therapy for severe and life threatening rare diseases. It programs include EB-101 (gene-corrected skin grafts) for recessive dystrophic epidermolysis bullosa (RDEB); ABO-102 (AAV-SGSH), an adeno-associated virus (AAV) based gene therapy for Sanfilippo syndrome type A (MPS IIIA) and ABO-101 (AAV NAGLU), an AAV based gene therapy for Sanfilippo syndrome type B (MPS IIIB). The company was founded in 1974 and is headquartered in Dallas, TX.