B.Riley FBR Thinks Genfit SA’s Stock is Going to Recover

By Jason Carr

B.Riley FBR analyst Mayank Mamtani reiterated a Buy rating on Genfit SA (GNFTResearch Report) today and set a price target of $52. The company’s shares closed yesterday at $20.58, close to its 52-week low of $20.12.

Mamtani said:

“On 6/11, Genfit SA (GNFT) traded weak (–14% vs. the XBI down 1.1%) in sympathy with the CBAY Ph. II NASH negative liver-fat reduction readout, as assessed by MRI-PDFF. We strongly view this as a buying opportunity and highlight within this note the key differences with GNFT’s lead drug, elafibranor (dual PPARα/δagonist), relative to CBAY’s seladelpar (PPARδagonist), in terms of mechanism and breadth of clinical data generated to date. We believe the history of NASH stock reactions to MRI-PDFF readouts understandably drew investors to CBAY’s catalyst, but we reiterate our belief that this PPAR drug class is most relevant on histology endpoint, i.e., NASH resolution, which GNFT is expected to deliver from its Ph. III RESOLVE-IT trial by YE19.”

According to TipRanks.com, Mamtani ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -6.3% and a 34.7% success rate. Mamtani covers the Healthcare sector, focusing on stocks such as Spring Bank Pharmaceuticals Inc, Arbutus Biopharma Corporation, and Madrigal Pharmaceuticals Inc.

Genfit SA has an analyst consensus of Strong Buy, with a price target consensus of $59.25, a 187.9% upside from current levels. In a report issued on May 31, H.C. Wainwright also maintained a Buy rating on the stock with a $72 price target.

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The company has a one-year high of $26.25 and a one-year low of $20.12. Currently, Genfit SA has an average volume of 170.4K.

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Genfit SA is a biopharmaceutical company involved in drug discovery and development for the early diagnosis, prevention and treatment of cardiometabolic diseases. The company focuses on the discovery and development of drug candidates in areas of high unmet medical needs corresponding to a lack of suitable treatments.