H.C. Wainwright Thinks Synlogic Inc’s Stock is Going to Recover

By Austin Angelo

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Synlogic Inc (SYBXResearch Report), with a price target of $22. The company’s shares closed on Friday at $5.46, close to its 52-week low of $4.61.

Selvaraju noted:

“We calculate an enterprise value of $820M, comprised of $620M for SYNB1020 in UCD and hyperammonemia and I/O portfolio. This yields a price objective of $22.00 per share, with approximately 37M fully-diluted shares outstanding as of mid-2020 (including exercise of approximately 2.5M outstanding options and all of the roughly 2.5M pre-funded warrants previously issued in the last private placement transaction). Risks include, but are not limited to: (1) feasibility issues with bridging the liquid to the solid oral formulation; (2) negative results from early trials; (3) slower-than-anticipated clinical testing; and (4) inability to obtain regulatory approvals.”

According to TipRanks.com, Selvaraju ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -10.6% and a 26.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and Stealth Biotherapeutics Corp.

Currently, the analyst consensus on Synlogic Inc is a Strong Buy with an average price target of $21.

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Based on Synlogic Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $12.34 million. In comparison, last year the company had a GAAP net loss of $14.59 million.

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Synlogic, Inc. is a clinical-stage biopharmaceutical company, which engages in drug discovery and development of synthetic biotic medicines. It focuses on SYNB1020 and SYNB1618, which are orally administered and target hyperammonemia and phenylketonuria. It also works on SYNB1891, an intratumorally administered which treats cancer.