Cantor Fitzgerald Reiterates a 'Sell' on Ironwood Pharmaceuticals (IRWD); Expect Sell-Off Even in Best-Case Scenario
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Price: $12.83 +2.48%
Rating Summary:
6 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
6 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade IRWD Now!
Cantor Fitzgerald reiterates a 'Sell' on Ironwood Pharmaceuticals (NASDAQ: IRWD) price target of $8.00.
Analyst, Irina Rivkind, said, "We reiterate our SELL rating going into the Linaclotide PDUFA: We remain cautiously optimistic about a first pass approval (we estimate 70% probability) but maintain that the stock is overvalued and could sell off even under a best-case scenario (since investors may play the event and then exit the stock post-approval due to lack of pending positive catalysts). On the flip side, we think that a CRL would be catastrophic to the stock (drop of 30% or more). Under this second scenario, the company would continue to burn significant cash while it awaited FDA approval (which may expedite another financing round with the stock potentially trading at lower levels). We are also not expecting a near-term company takeout."
For an analyst ratings summary and ratings history on Ironwood Pharmaceuticals click here. For more ratings news on Ironwood Pharmaceuticals click here.
Shares of Ironwood Pharmaceuticals closed at $12.29 yesterday, with a 52 week range of $9.97-$15.92.
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Analyst, Irina Rivkind, said, "We reiterate our SELL rating going into the Linaclotide PDUFA: We remain cautiously optimistic about a first pass approval (we estimate 70% probability) but maintain that the stock is overvalued and could sell off even under a best-case scenario (since investors may play the event and then exit the stock post-approval due to lack of pending positive catalysts). On the flip side, we think that a CRL would be catastrophic to the stock (drop of 30% or more). Under this second scenario, the company would continue to burn significant cash while it awaited FDA approval (which may expedite another financing round with the stock potentially trading at lower levels). We are also not expecting a near-term company takeout."
For an analyst ratings summary and ratings history on Ironwood Pharmaceuticals click here. For more ratings news on Ironwood Pharmaceuticals click here.
Shares of Ironwood Pharmaceuticals closed at $12.29 yesterday, with a 52 week range of $9.97-$15.92.
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