JMP Securities Upgrades Zafgen (ZFGN) to Market Outperform

JMP Securities upgraded Zafgen (NASDAQ: ZFGN) from Market Perform to Market Outperform with a price target of $8.00.

Analyst Jason Butler commented, "We are upgrading our rating on Zafgen ahead of what we anticipate will be positive Phase 1 results for the company’s second-generation MetAP2 inhibitor, ZGN-1061. We believe these results will likely demonstrate proof-of-concept weight loss efficacy and support a favorable safety profile. We acknowledge that additional data will be needed to provide greater comfort regarding the safety profile (i.e., relative to beloranib); however, with a negative EV (0.75x net cash) and cash sufficient to fund a planned Phase 2 trial for ZGN-1061, we believe the upcoming Phase 1 read-out represents an attractive value-generating event. We derive our $8 price target through a riskadjusted NPV analysis of ZGN-1061 sales assuming development is pursued for a high-risk obesity indication."

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

Shares of Zafgen closed at $3.35 yesterday.

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