Needham & Company Upgrades Omeros Corp. (OMER) to Buy on Valuation
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Price: $4.94 --0%
Rating Summary:
8 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
8 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade OMER Now!
Needham & Company upgraded Omeros Corp. (NASDAQ: OMER) from Hold to Buy with a price target of $10.00 citing valuation.
The firm comments, "Omeros is expected to announce results of a Phase 3 trial of OMS-103HP in meniscectomy surgery in the near future, presumably in Dec 2012. Although Omeros previously announced positive results from a Phase 2 trial in this indication, we have been concerned by Phase 3 trial failures with OMS103HP in ACL surgery in early 2011. Our essentially neutral sentiment towards the outcome of the Phase 3 OMS103HP trial is unchanged. However, we are adopting a more favorable overall view towards the stock given the announcement last month of positive results from a second Phase 3 trial of OMS302 in eye surgery and the recent drop in share price, leading to the current relatively low ~$175M EV. We do not believe the commercial opportunity for OMS302 in eye surgery is particularly large, but it may present a floor in case of a negative OMS103HP outcome. Consequently, we are upgrading to BUY. Our $10 price target is based on 25x our 2017 EPS estimate,
discounted 15%."
For an analyst ratings summary and ratings history on Omeros Corp. click here. For more ratings news on Omeros Corp. click here.
Shares of Omeros Corp. closed at $7.29 yesterday, with a 52 week range of $3.64-$13.45.
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The firm comments, "Omeros is expected to announce results of a Phase 3 trial of OMS-103HP in meniscectomy surgery in the near future, presumably in Dec 2012. Although Omeros previously announced positive results from a Phase 2 trial in this indication, we have been concerned by Phase 3 trial failures with OMS103HP in ACL surgery in early 2011. Our essentially neutral sentiment towards the outcome of the Phase 3 OMS103HP trial is unchanged. However, we are adopting a more favorable overall view towards the stock given the announcement last month of positive results from a second Phase 3 trial of OMS302 in eye surgery and the recent drop in share price, leading to the current relatively low ~$175M EV. We do not believe the commercial opportunity for OMS302 in eye surgery is particularly large, but it may present a floor in case of a negative OMS103HP outcome. Consequently, we are upgrading to BUY. Our $10 price target is based on 25x our 2017 EPS estimate,
discounted 15%."
For an analyst ratings summary and ratings history on Omeros Corp. click here. For more ratings news on Omeros Corp. click here.
Shares of Omeros Corp. closed at $7.29 yesterday, with a 52 week range of $3.64-$13.45.
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