Cantor Fitzgerald Starts Omeros Corp. (OMER) at Overweight

Cantor Fitzgerald analyst Brandon Folkes initiates coverage on Omeros Corp. (NASDAQ: OMER) with a Overweight rating and a price target of $26.00.

The analyst comments "We use a blend of DCF and EV/EBITDA to arrive at our price target of $26. OMER stock has traded at a significant discount to its intrinsic value, following Omidria's loss of pass-through payment status at the end of 2017. Since reinstatement of pass-through reimbursement in October 2018, Omidria sales have rebounded meaningfully, reinforcing our view that Omidria has peak sales potential of $300MM+. However, the lack of visibility around reimbursement post-October 2020 has continued to create an overhang on the stock, not just on Omidria, but overshadowing the potential value in Omeros's pipeline. Investors wanting to own OMER for the company's broad pipeline have been required to tackle the valuation ascribed to Omidria given the uncertainty. Based on our diligence we believe investors can be rewarded from current levels through the pipeline alone, and thus believe the risk reward is to the upside, creating a compelling investment opportunity. As the company advances its pipeline toward approval, we expect data readouts, approvals, and upward earnings revisions to drive OMER stock higher."

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 $19.62 yesterday.

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