Piper Jaffray Believes OTIC Still Has Room to Grow

By George MacDonald

In a report released today, Joshua Schimmer from Piper Jaffray maintained an Overweight rating on Otonomy (NASDAQ: OTIC), with a price target of $46. The company’s shares opened today at $40, close to its 52-week high of $41.99.

Schimmer observed, “OTIC reported Q4 2014 earnings Wednesday after the close. The company continues to advance its pipeline in the ear disease space with several important events this year, including the Phase 2b readout in Q2 for OTO-104, and the potential approval of AuriPro later this year as well as several additional pipeline events. The company ended the quarter with cash and cash equivalents of ~$156M, but raised an additional ~$80M from a follow-on in January . We continue to believe that OTIC offers an attractive risk and reward profile in the small-cap space, even following the recent run-up in the shares. We reiterate our OW rating and following minor model adjustments and rolling the DCF 1 year forward, the PT remains $46”

Otonomy has an analyst consensus of Strong Buy, with a price target consensus of $46.

The company has a one year high of $41.99 and a one year low of $15.19. Currently, Otonomy has an average volume of 191.9k.

According to TipRanks.com, Schimmer is a 5-star analyst with an average return of 19.8% and a 74.0% success rate. Schimmer covers the Healthcare sector, focusing on stocks such as Bellicum Pharmaceuticals, Alexion Pharmaceuticals, and Infotek Pharmaceuticals.

Otonomy Inc is a clinical-stage biopharmaceutical company focused on the development and commercialization of therapeutics for the treatment of diseases and disorders of the ear.