Analyst Explains Why They Downgraded Their Rating on ContraVir Pharmaceuticals Inc (CTRV)

By Austin Angelo

Maxim Group analyst Jason McCarthy downgraded ContraVir Pharmaceuticals Inc (CTRVResearch Report) to Hold today. The company’s shares closed yesterday at $0.28, close to its 52-week low of $0.21.

McCarthy observed:

“ContraVir filed its 10-K on 3/14 for YE18, reporting a net loss of ($17.9M) and ending the year with $2.8M in cash on the balance sheet. The company is in the process of shifting its strategy away from TXL and toward CRV431, targeting NASH, fibrosis, liver cancer, and possibly other indications. Given the progress in NASH across the space and subsequent rising valuations, we see management’s decision as a strategic positive. That said, we estimate the company only has ~$5M in cash (including $2.5M raised in late January) and needs to raise more capital to support CRV431 development. Conclusion. We like the shift toward the NASH space (as well as the other potential indications) but capital is a concern; downgrading to and removing our price target.”

According to TipRanks.com, McCarthy is a 1-star analyst with an average return of -0.7% and a 37.0% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as Actinium Pharmaceuticals, Inovio Pharmaceuticals, and Vertex Pharmaceuticals.

ContraVir Pharmaceuticals Inc has an analyst consensus of Hold.

See today’s analyst top recommended stocks >>

The company has a one-year high of $2.60 and a one-year low of $0.21. Currently, ContraVir Pharmaceuticals Inc has an average volume of 231.3K.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

ContraVir Pharmaceuticals, Inc. engages in the development and commercialization of pleiotropic drug therapy for treatment of chronic liver disease. Its product candidates are CRV431, a novel drug candidate designed to target a class of proteins called cyclophilins; and TXL, a novel lipid acyclic nucleoside phosphonate that is designed to deliver high intracellular concentrations of the active antiviral agent tenofovir diphosphate. The company was founded on May 15, 2013 and is headquartered in Edison, NJ.