H.C. Wainwright Thinks Sol-Gel Technologies Ltd’s Stock is Going to Recover

By Ryan Adsit

In a report released today, Ram Selvaraju from H.C. Wainwright initiated coverage with a Buy rating on Sol-Gel Technologies Ltd (NASDAQ: SLGL) and a price target of $21. The company’s shares closed on Friday at $6.97, close to its 52-week low of $6.18.

Selvaraju noted:

“Valuation methodology, risks and uncertainties. We have valued Sol-Gel based on a composite assessment of the company’s most advanced clinical-stage drugs. Underlying this, we employ a discounted cash flow (DCF)-based analysis that culminates in a risk-adjusted net present value (rNPV) valuation for each of these agents. This yields a value of $102M for TWIN, assuming a 50% probability of success, and a $323M valuation for VERED, assuming a 60% probability of success. The generic ivermectin cream program contributes a value of $7M to our composite assessment.”

According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 1.2% and a 44.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

Sol-Gel Technologies Ltd has an analyst consensus of Moderate Buy, with a price target consensus of $21.

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The company has a one-year high of $16.48 and a one-year low of $6.18. Currently, Sol-Gel Technologies Ltd has an average volume of 20.59K.

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Sol-Gel Technologies Ltd. a clinical-stage dermatology company, which focuses on identifying, developing and commercializing topical dermatological drug products for the treatment of skin diseases. Its products include VERED, TWIN and SIRS-T. The company was founded by David Avnir and Alon Seri-Levy on October 28, 1997 and is headquartered in Ness Ziona, Israel.