Wells Fargo Reiterates a Buy Rating on Global Blood Therapeutics

By George MacDonald

In a report released today, Jim Birchenough from Wells Fargo reiterated a Buy rating on Global Blood Therapeutics (NASDAQ: GBT). The company’s shares opened today at $22.39.

Birchenough noted, “We arrive at our $75 to $81 valuation range through a probability adjusted NPV for GBT440 assuming $2.7B in peak sales, and 60%-65% likelihood of success. Specific risks to GBT include risk of not translating phase 2 benefit into phase 3 success, risk of unexpected toxicity and commercial risk related to adoption and reimbursement.”

According to TipRanks.com, Birchenough is a top 100 analyst with an average return of 22.0% and a 53.3% success rate. Birchenough covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals, Inc., Applied Genetic Technologies, and Aeglea Biotherapeutics Inc.

Global Blood Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $71.

The company has a one year high of $55.74 and a one year low of $12.24. Currently, Global Blood Therapeutics has an average volume of 386.5K.

Based on the recent corporate insider activity of 14 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 GBT in relation to earlier this year. Last month, Sham Hing, a the SVP of Chemistry of GBT bought 21,429 shares for a total of $10,500.

Global Blood Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in discovering, developing and commercializing novel therapeutics to treat grievous blood-based disorders. It also provides oral medicines for sickle cell diseases. The company was founded by Matthew P. Jacobson, Andrej Sali, Jack Taunton, Charles J. Homcy, Craig D. Muir and David R. Phillips in February 2011 and is headquartered in South San Francisco, CA.