Canaccord Genuity on Life Sciences/Specialty Pharmaceuticals: Three Small-Cap Buy Ideas for 2012
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Price: $28.16 +0.64%
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Life Sciences/Specialty Pharmaceuticals: Three Small-Cap Buy Ideas for 2012 - Initiate coverage with a Buy rating on MAPP, PTX & HITK
Analyst, Randall Stanicky, said, "With a focus on providing stock ideas that cut across all market capitalizations, we are launching on three small-cap stocks where we see potential for attractive upside. Our launch follows ongoing diligence across the sector with a focus on uniquely positioned companies with catalysts that can drive upside as we build out our coverage footprint. While several well positioned companies exist, we
highlight MAPP, PTX and HITK as bringing a combination of attractive valuation, strategically appealing platforms and catalysts. We see most upside in MAPP, with near--term catalysts approaching."
1) MAP Pharmaceuticals (Nasdaq: MAPP)(BUY, $24 PT): Top small-cap idea with catalyst-heavy H1/12. - . . .we are BUYERS here on a combination of (1) LEVADEX upside relative to expectations; (2) strategic value in both the technology and product base likely to become more clear post LEVADEX approval; (3) catalyst-heavy near-term path; and (4) a cash-flow-based valuation that supports significant risk-adjusted upside potential from here.
2) Pernix Therapeutics (NYSE: PTX)(BUY, $15 PT): Solid revenue story with further business development expected. - PTX offers robust growth with limited development risk on a platform we think will continue to benefit from further business development. We are above consensus on Cedax, where recent TRx strength leaves us with greater confidence; combined with solid Macoven contribution, it should deliver leverage through the P&L and material bottom-line growth through 2016.
3) Hi-Tech Pharmacal (Nasdaq: HITK)(BUY, $45 PT): High-barrier platform with strategic value. - We think HITK shares can continue to grind higher on solid growth from the company’s high-barrier core business that we think brings attractive strategic value. P&L upside relative to our and Street expectations could come from (1) a stickier fluticasone opportunity than expected, (2) earlier Gx ASACOL launch or (3) business development productivity.
Analyst, Randall Stanicky, said, "With a focus on providing stock ideas that cut across all market capitalizations, we are launching on three small-cap stocks where we see potential for attractive upside. Our launch follows ongoing diligence across the sector with a focus on uniquely positioned companies with catalysts that can drive upside as we build out our coverage footprint. While several well positioned companies exist, we
highlight MAPP, PTX and HITK as bringing a combination of attractive valuation, strategically appealing platforms and catalysts. We see most upside in MAPP, with near--term catalysts approaching."
1) MAP Pharmaceuticals (Nasdaq: MAPP)(BUY, $24 PT): Top small-cap idea with catalyst-heavy H1/12. - . . .we are BUYERS here on a combination of (1) LEVADEX upside relative to expectations; (2) strategic value in both the technology and product base likely to become more clear post LEVADEX approval; (3) catalyst-heavy near-term path; and (4) a cash-flow-based valuation that supports significant risk-adjusted upside potential from here.
2) Pernix Therapeutics (NYSE: PTX)(BUY, $15 PT): Solid revenue story with further business development expected. - PTX offers robust growth with limited development risk on a platform we think will continue to benefit from further business development. We are above consensus on Cedax, where recent TRx strength leaves us with greater confidence; combined with solid Macoven contribution, it should deliver leverage through the P&L and material bottom-line growth through 2016.
3) Hi-Tech Pharmacal (Nasdaq: HITK)(BUY, $45 PT): High-barrier platform with strategic value. - We think HITK shares can continue to grind higher on solid growth from the company’s high-barrier core business that we think brings attractive strategic value. P&L upside relative to our and Street expectations could come from (1) a stickier fluticasone opportunity than expected, (2) earlier Gx ASACOL launch or (3) business development productivity.
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