Analyst Explains Why They Downgraded Their Rating on OncoSec Medical (ONCS)

By Austin Angelo

In a report released today, Ram Selvaraju from H.C. Wainwright downgraded OncoSec Medical (ONCSResearch Report) to Hold, with a price target of $1. The company’s shares closed yesterday at $0.87, close to its 52-week low of $0.68.

Selvaraju said:

“Our price target is derived from a market value of $74M for OncoSec, which includes a discounted cash flow-based asset value for ImmunoPulse IL-12 (TAVO), with 15% discount rate, 0% terminal growth rate and 30% probability of success. Investment risks include: (1) failure of ImmunoPulse IL-12 in clinical trials; (2) failure of ImmunoPulse IL-12 to secure regulatory approval; (3) failure of ImmunoPulse IL-12 to achieve commercial success due to market size, penetration rate, and/ or competition; and (4) dilution risk.”

According to TipRanks.com, Selvaraju has 0 stars on 0-5 star ranking scale with an average return of -9.2% and a 29.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, Synergy Pharmaceuticals Inc, and Bausch Health Companies Inc.

OncoSec Medical has an analyst consensus of Moderate Buy, with a price target consensus of $3.

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Based on OncoSec Medical’s latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $12.44 million. In comparison, last year the company had a GAAP net loss of $5.9 million.

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OncoSec Medical, Inc. engages in the design and commercialize medical products for the treatment of cancer. It involves in the discovery and development of novel immunotherapeutic products to improve treatment options for patients and physicians, which intends to treat oncology indications.