Mizuho Securities Reiterates Their Hold Rating on Achaogen (AKAO)

By Ryan Adsit

In a report released today, Difei Yang from Mizuho Securities reiterated a Hold rating on Achaogen (AKAOResearch Report). The company’s shares closed yesterday at $3.27, close to its 52-week low of $3.24.

Yang observed:

“We currently project a cash runway into mid-2019. In our valuation, we assume a $200 mil capital raise at $3.50/share in 1Q19 and we also increased our discount rate from 10% to 17% to reflect significantly increased risks. Our PT goes to $8.”

According to TipRanks.com, Yang is a 5-star analyst with an average return of 19.0% and a 48.9% success rate. Yang covers the Healthcare sector, focusing on stocks such as Alder Biopharmaceuticals, Audentes Therapeutics, and Revance Therapeutics.

Currently, the analyst consensus on Achaogen is a Strong Buy with an average price target of $17.75.

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The company has a one-year high of $15 and a one-year low of $3.24. Currently, Achaogen has an average volume of 746K.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock.

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Achaogen, Inc. is a biopharmaceutical company, which engages in the research, development, and commercialization of antibacterial treatments for multi-drug resistant (MDR) gram-negative infections. It offers Plazomicin to treat bacterial illness, such as complicated urinary tract infection, blood stream infections, and other infections due to MDR Enterobacteriaceae. The company was founded by Nathaniel E. David in June 2002 and is headquartered in South San Francisco, CA.