Maxim Group Believes This Stock Won’t Stop Here

By George MacDonald

Maxim Group analyst Jason Kolbert reiterated a Buy rating on Sucampo Pharmaceuticals (NASDAQ: SCMP) today and set a price target of $19. The company’s shares opened today at $15.06, close to its 52-week high of $16.50.

Kolbert commented, “Sucampo announced that the European Mutual Recognition Procedure (MRP) for Amitiza has led to a recommendation for approval in eight additional European countries. Amitiza had been approved in the UK, and the MRP recommendation should lead to approval by each of the eight countries over the coming months. This recommendation should allow Amitiza to enter new European markets and continue its sales growth. Sucampo has recently made significant progress with Amitiza, with agreements to resolve patent litigation and share in the long-term value of the product. We have not adjusted our 2015 estimates for European sales at this time. We are awaiting receipt of final approval and product launches in the additional MRP countries..”

Currently, the analyst consensus on Sucampo Pharmaceuticals is Strong Buy and the average price target is $17.67, representing a 17.3% upside. In a report issued on January 20, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $16 price target.

Sucampo Pharmaceuticals` market cap is currently $707.8M and has a P/E ratio of 116.7. The company has a book value ratio of 9.88%.

According to TipRanks, Kolbert is a 4-star analyst with an average return of 7.7% and a 43.3% success rate. Kolbert covers the Healthcare sector, focusing on stocks such as Brainstorm Cell Therapeutics, ImmunoCellular Therapeutics, and Achillion Pharmaceuticals.

Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company engaged in research, development & sale of proprietary drugs based on ion channel activators known as prostones to treat gastrointestinal, neurologic, & oncology-based inflammatory disorders.