Sucampo Pharmaceuticals Gets a Buy Rating from Maxim Group

By Austin Angelo

In a report released today, Jason Kolbert from Maxim Group assigned a Buy rating to Sucampo Pharmaceuticals (NASDAQ: SCMP), with a price target of $23. The company’s shares opened today at $14.80.

Kolbert wrote:

“Sucampo’s stock has risen sharply in the past few weeks (from ~$10 to $16+) on no new fundamental news. However, a Bloomberg story has been circulating that the company may be entertaining suitors. We have no specific knowledge to confirm this, but do see an undervalued company that is generating free cash flow and has a strong (orphan) pipeline. Our last note (from 11/21) reviewed the R&D Day which focused on two key pipeline products, VTS-270 (Neeman Pick Disease) and CPP-1X/sulindac (Familial Adenomatous Polyposis ).”

According to TipRanks.com, Kolbert is ranked 0 out of 5 stars with an average return of -7.6% and a 33.5% success rate. Kolbert covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Arbutus Biopharma Corporation, and ContraVir Pharmaceuticals Inc.

Currently, the analyst consensus on Sucampo Pharmaceuticals is Strong Buy and the average price target is $21.13, representing a 42.8% upside.

In a report released yesterday, B.Riley FBR also assigned a Buy rating to the stock with a $18 price target.

Based on Sucampo Pharmaceuticals’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $61.27 million and quarterly net profit of $10.37 million. In comparison, last year the company earned revenue of $57.87 million and had a net profit of $8.09 million.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock.

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Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company, which engages in the development, identification, acquisition, and delivery of innovative pharmaceutical products. It operates through the following geographic segments: Asia, the Americas, and Europe.