FBR Capital Remains Bullish on Seres Therapeutics (MCRB); Says Sell-Off is 'Overdone'

August 12, 2016 8:01 AM EDT
Get Alerts MCRB Hot Sheet
Price: $11.88 +0.08%

Rating Summary:
    6 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 24 | New: 8
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FBR Capital maintained an Outperform rating on Seres Therapeutics (NASDAQ: MCRB), and cut the price target to $23.00 (from $43.00), following the company's recent sell-off.

Analyst Vernon Bernardino commented, "We look at MCRB as the leader in advancing the microbiome approach to treating chronic diseases and infections. While we acknowledge that the near-term focus of investors may be how the primary endpoint of reducing the relative risk of infection recurrence in the SER-109 Phase II ECOSPOR clinical study in recurrent Clostridium difficile infection (CDI) was not achieved, we think the stock sell-off since July 29 is overdone. The development of MCRB’s other clinical-stage assets are partnered with Swiss-based Nestle, which has agreed to fund up to one-third of development costs, according to a $1.9B agreement signed in January 2016. MCRB has also signed four other collaborations, which we think represent nascent upside potential in the stock. Since the advancement of SER-109 may take longer than anticipated, we lower our price target from $43 per share, to $23, but we reiterate our Outperform rating."

For an analyst ratings summary and ratings history on Seres Therapeutics click here. For more ratings news on Seres Therapeutics click here.

Shares of Seres Therapeutics closed at $9.73 yesterday.

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