Lexicon Pharma (LXRX) Pullback is Buying Opp, Thinks Gabelli

October 11, 2013 11:50 AM EDT
Get Alerts LXRX Hot Sheet
Price: $14.30 --0%

Rating Summary:
    5 Buy, 3 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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Gabelli maintained a Buy rating on Lexicon Pharmaceuticals (NASDAQ: LXRX). The stock decline recently after the company said it was ending development of telotristat etiprate for treatment of ulcerates colitis. Analyst Kevin Kedra views the pullback as a buying opportunity.

"We view yesterday's decline as a buying opportunity for LXRX. We continue to believe that the primary nearterm catalyst for the company will be a partnership with a major pharmaceutical company for LX4211 in diabetes. We note that last week’s positive data for LX4211 in patients with renal impairment should help differentiate the compound from competitors and make it an attractive asset within diabetes. Lexicon trades at a 47% discount to our 2014 PMV of $4.75 per share, which excludes any benefit from either ulcerative colitis or IBS-d. Even without ulcerative colitis, Lexicon remains a unique opportunity with two fully-owned Phase III compounds and a third that could enter Phase III in early 2014," said Kedra.

For an analyst ratings summary and ratings history on Lexicon Pharmaceuticals click here. For more ratings news on Lexicon Pharmaceuticals click here.

Shares of Lexicon Pharmaceuticals closed at $2.64 yesterday.

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