Mizuho Securities Keeps Their Buy Rating on Zogenix (ZGNX)

By Ryan Adsit

Mizuho Securities analyst Difei Yang maintained a Buy rating on Zogenix (ZGNXResearch Report) today and set a price target of $69. The company’s shares closed yesterday at $52.67.

Yang said:

“We gave consideration to (70% PoS). DCF: We assumed a 13% discount rate and a terminal value of 4.5x our estimated 2028 FCF of $861 mil. EV/Sales: we apply a 8x multiple to discounted 2025 sales of $352 mil. the U.S. market, we assume 4Q19 launch and peak market share of 75% (among new therapies) in 2028, equivalent to $526mn in peak sales; for EU and Japan, we assume late 2021 and late 2022 launches. For LGS, we project peak market penetration of 14% in 2028 in the U.S and PoS adjusted sales of $463mn.”

According to TipRanks.com, Yang is a 5-star analyst with an average return of 19.3% and a 51.1% success rate. Yang covers the Healthcare sector, focusing on stocks such as Nightstar Therapeutics Limited, Xeris Pharmaceuticals Inc, and Alder Biopharmaceuticals.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Zogenix with a $72 average price target.

See today’s analyst top recommended stocks >>

Based on Zogenix’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $22.43 million. In comparison, last year the company had a GAAP net loss of $39.71 million.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock.

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.

Zogenix, Inc. is a pharmaceutical compan. It engages in the development and commercialization of central nervous system (CNS) therapies and products for the treatment orphan diseases and other CNS disorders. Its products include ZX008 and Relday.