Clovis Oncology (CLVS) Receives a Buy from H.C. Wainwright

By Austin Angelo

In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on Clovis Oncology (CLVSResearch Report), with a price target of $36. The company’s shares closed yesterday at $8.87, close to its 52-week low of $8.77.

White wrote:

“Our $36 price target is derived from a sum-of-the-parts analysis based on probability-adjusted revenue forecasts for Rubraca in ovarian cancer combination and prostate cancer indications, and the net present value (NPV) for the current commercial business. We use the NPV of our revenue forecasts through 2028, apply a 40% probability of success (POS) for Rubraca in ovarian combination, and a 45% POS for Rubraca in prostate cancer.”

According to TipRanks.com, White is a 5-star analyst with an average return of 18.3% and a 49.7% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Aeglea Biotherapeutics Inc, and Spectrum Pharmaceuticals.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Clovis Oncology with a $24.50 average price target.

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Based on Clovis Oncology’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $120 million. In comparison, last year the company had a GAAP net loss of $101 million.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CLVS in relation to earlier this year. Last month, Paul Klingenstein, a Director at CLVS bought 25,862 shares for a total of $7,500.

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Clovis Oncology, Inc. is a commercial stage biotechnology company, which engages in the acquisition, development, and commercialization of cancer treatments in the United States, Europe, and other markets. Its product development programs target specific subsets of cancer, and simultaneously develop, with partners, diagnostic tools intended to direct a compound in development to the patients most likely to benefit from its use. The company was founded by Andrew R. Allen, Gillian C. Ivers-Read, Patrick J. Mahaffy, and Erle T. Mast on April 20, 2009 and is headquartered in Boulder, CO.