Cantor Fitzgerald Sticks to Their Buy Rating for Verastem

By Jason Carr

In a report released today, Mara Goldstein from Cantor Fitzgerald maintained a Buy rating on Verastem (NASDAQ: VSTM), with a price target of $17. The company’s shares opened today at $3.58.

Goldstein commented:

“Working off Overhangs. We think VSTM shares are undervalued relative to the duvelisib opportunity, and this is partly a function, in our view, of overhangs, particularly cash. VSTM had just under $87 mln in cash, which is sufficient to fund the company into 2H18, but will need additional capital to see duvelisib through commercialization. VSTM has an additional $35 mln available under a debt facility, and the company could add additional cash through a partner deal. It has been our anticipation that VSTM will need to address the capital markets in some way in 2018.”

According to TipRanks.com, Goldstein is a 3-star analyst with an average return of 3.2% and a 40.9% success rate. Goldstein covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Applied Genetic Technologies, and Corvus Pharmaceuticals Inc.

Currently, the analyst consensus on Verastem is Strong Buy and the average price target is $15, representing a 319.0% upside.

In a report issued on March 8, B.Riley FBR also initiated coverage with a Buy rating on the stock.

Based on Verastem’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $0 and GAAP net loss of $23.13 million. In comparison, last year the company earned revenue of $0 and had a GAAP net loss of $11.66 million.

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Verastem, Inc. is a clinical biopharmaceutical company, which is focused on discovering and developing drugs to treat cancer by the targeted killing of cancer stem cells. The company is developing small molecule inhibitors of signaling pathways which includes Focal Adhesion Kinase FAK, PI3K/mTOR and Wnt that are critical to cancer stem cell survival and proliferation. Verastem was founded by Richard H. Aldrich, Michelle Dipp, Piyush Gupta, Satish Jindal, Eric S. Lander, Robert F. Weinberg and Christoph H. Westphal on August 4, 2010 and is headquartered in Cambridge, MA.