H.C. Wainwright Initiates a Buy Rating on Rubius Therapeutics Inc (RUBY)

By Austin Angelo

Rubius Therapeutics Inc (RUBYResearch Report) received a Buy rating and a $40 price target from H.C. Wainwright analyst Andrew Fein today. The company’s shares closed yesterday at $14.60, close to its 52-week low of $12.71.

Fein commented:

“We have currently only assigned value to RTX-134 in PKU and RTX-240 in NSCLC. Our price target of $40/share is based on an equally-weighted composite of: (a) $40.7/share, as a 30x multiple of taxed and diluted $21.95 discounted back to FY19 at 20% (in line with the expected P/E multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $39.4/share (discounted cash flow analysis using a 20% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”

According to TipRanks.com, Fein is a 1-star analyst with an average return of -0.5% and a 39.6% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, ACADIA Pharmaceuticals Inc, and Strongbridge Biopharma Plc.

Currently, the analyst consensus on Rubius Therapeutics Inc is a Moderate Buy with an average price target of $25.

See today’s analyst top recommended stocks >>

Based on Rubius Therapeutics Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $32.58 million. In comparison, last year the company had a GAAP net loss of $15.26 million.

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.

Rubius Therapeutics, Inc. engages in the development of red-cell therapeutic medicines for cancer, autoimmune diseases, hemophilia, and infectious and metabolic diseases. The company was founded by Avak Kahvejian, Jordi Mata-Fink, and Noubar Afeyan and is headquartered in Cambridge, MA.