Mirati Therapeutics Receives a New Rating from Top Analyst

By Carrie Williams

Leerink Swann analyst Michael Schmidt reiterated a Hold rating on Mirati Therapeutics (NASDAQ: MRTX) yesterday and set a price target of $7. The company’s shares opened today at $5.30, close to its 52-week low of $4.40.

Schmidt observed:

“We expect the next updates in 2017. Key Stats: (NASDAQ :MRTX) Sector: Biotechnology S&P 600 Health Care Index: 1,659.40 Price : $5.35 Price Target: $7.00 Methodology: Discounted sales analysis with 15% discount rate 52 Week High: $43.20 52 Week Low: $4.40 Shares Outstanding (mil): 19.9 Market Capitalization (mil): $106.5 Cash Per Share: $3.66 Dividend (ann): $0.00 Dividend Yield: 0.0% Completion: November 10, 2016, 9:47PM EDT. Distribution: November 10, 2016, 9:47PM EDT. Cash Per Share: includes cash and short-term investments Please refer to pages 5 – 7 for Important Disclosures, Price Charts and Analyst Certification.MIRATI THERAPEUTICS, INC. November 10, 2016 INVESTMENT THESIS We rate Mirati Therapeutics Market Perform with a $7 price target. Mirati is an early stage biotech company focused on developing targeted oncology products in genetically defined patient populations. MRTX currently has three product candidates in development, two oral multi- kinase inhibitors, MGCD265 and MGCD516, and mocetinostat, an oral spectrum-selective HDAC (histone deacetylase) inhibitor. Mirati is developing its multi-kinase inhibitors for highly enriched subsets of cancer patients with specific genetic alterations present only in cancer cells. Based on our due diligence with MEDACorp key opinion leaders (KOLs), we believe this strategy could lead to the development of cancer drugs with increased efficacy while reducing side effects in these patients and with an accelerated path to market. However trials could be difficult to enroll, given the low abundance of target patients and competitors with potentially superior agents and stronger balance sheets can enter the market rapidly.”

According to TipRanks.com, Schmidt is a top 100 analyst with an average return of 19.1% and a 58.6% success rate. Schmidt covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Adaptimmune Therapeutics, and Karyopharm Therapeutics.

Currently, the analyst consensus on Mirati Therapeutics is Hold and the average price target is $6.33, representing a 19.4% upside.

In a report issued on November 3, Jefferies also reiterated a Hold rating on the stock with a $5 price target.

The company has a one year high of $43.20 and a one year low of $4.40. Currently, Mirati Therapeutics has an average volume of 226.6K.

Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRTX in relation to earlier this year. Most recently, in June 2016, Baker Bros. Advisors Lp, a Major Shareholder at MRTX sold 999,358 shares for a total of $9,398,321.

Mirati Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which focuses on developing a pipeline of targeted oncology products. It also focuses on its development programs on drugs intended to treat specific subsets of cancer patients with unmet needs. Its pipeline consists of product candidates, namely MGCD265, MGCD516 and mocetinostat. The company was founded on December 13, 1995 and is headquartered in San Diego, CA.