Mizuho Securities Remains a Buy on Zogenix (ZGNX)

By Carrie Williams

In a report released today, Difei Yang from Mizuho Securities maintained a Buy rating on Zogenix (ZGNXResearch Report), with a price target of $69. The company’s shares closed yesterday at $52.58.

Yang commented:

“We believe FINTEPLA’s unique mechanism of action has been a key part of the impressive data observed in Dravet syndrome (DS), a relatively homogeneous disease. Going forward we believe data in new indications will be an important part of the story, especially in Lennox-Gastaut syndrome (LGS) with Phase III data expected in 1Q20. While LGS is a potentially larger market, the disease is less homogeneous (caused by different genes). However, initial data is encouraging and we do see potential for FINTEPLA to show superior data vs. competitor Epidiolex.”

According to TipRanks.com, Yang is a 5-star analyst with an average return of 19.1% and a 50.0% 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, a 36.9% upside from current levels. In a report issued on March 1, Northland Securities also assigned a Buy rating to the stock with a $70 price target.

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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 20 insiders, corporate insider sentiment is negative on the stock.

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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.