Needham Thinks Nabriva’s Stock is Going to Recover

By Austin Angelo

In a report released today, Alan Carr from Needham assigned a Buy rating to Nabriva (NASDAQ: NBRV), with a price target of $18. The company’s shares closed yesterday at $3.30, close to its 52-week low of $3.26.

Carr said:

“Nabriva announced plans to acquire Zavante, a private company developing IV fosfomycin (Contepo) for the U.S. market. Zavante shareholders will receive 8.2M shares of NBRV stock and up to $97.5M in milestone payments (cash or shares) if certain regulatory/ commercial milestones are met. Although we have modest expectations for new IV antibiotics like Contepo in the hospital Gram- negative space, we believe the transaction is a net positive for Nabriva. No additional commercial infrastructure is needed beyond what is already planned for lefamulin. Zavante announced Phase 3 results 505(b)(2) submission is expected 4Q18. BUY. We recognize Nabriva needs cash, but believe lefamulin is a substantially underappreciated asset that will be relevant outside the challenging hospital setting.”

According to TipRanks.com, Carr is a 4-star analyst with an average return of 3.8% and a 41.5% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, Rhythm Pharmaceuticals Inc, and Lexicon Pharmaceuticals.

Currently, the analyst consensus on Nabriva is a Strong Buy with an average price target of $18, implying a 445.5% upside from current levels. In a report released yesterday, Cantor Fitzgerald also assigned a Buy rating to the stock with a $16 price target.

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The company has a one-year high of $14.10 and a one-year low of $3.26. Currently, Nabriva has an average volume of 490.5K.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NBRV in relation to earlier this year.

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Nabriva Therapeutics Plc is a clinical stage biopharmaceutical company, which engages in the research and development of novel antibiotics to treat serious infections. Its lead product candidate, lefamulin, is a pleuromutilin antibiotic available for systemic administration in humans.