4 Hot Analyst Morning Reads For Wednesday, September 12th

A synopsis of recent analyst activity that could buoy these small cap biotech stocks in trading today

I used to be scared of the devil until I heard about bankers. Anthony T.Hincks

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The biotech sector was flat to slightly down in trading Tuesday. We will see if we can get a rally today on positive trial results from a compound Gilead Sciences (GILD) is developing with Galapagos (GLPG). Both of these stocks are up nicely in pre-market and could set a positive tone for the sector in trading today. Right at the opening bell, here are four small biotech stocks garnering positive analyst commentary today.

Intercept Pharmaceuticals (ICPT) is started with a Buy with a $192 price target this morning at Roth Capital. Roth's analyst 'foresees positive readout of Phase 3 REGENERATE trial in 1H19 after performing a data-driven comparative analysis of OCA against its three competitors in Phase 3 and two molecules that recently completed Phase 2b trials.'

Zealand Pharma (ZEAL) sees its Overweight rating with $29 price target reinstated by Morgan Stanley this morning as the analyst firm reinstates coverage. Stanley's analyst notes 'that positive Phase III data for dasiglucagon this month could be a driver for shares, adding that a Phase III trial for dasiglucagon in pediatric hypoglycemia patients and a Phase III trial for dasiglucagon in short bowel syndrome should both get underway in coming weeks, setting stage for launch of both drugs in 2020 and 2021, respectively.'

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Foamix Pharmaceuticals (FOMX) will be up nicely in trading today after disclosing positive late stage trial data. H.C. Wainwright is taking that event as a good time to reiterate its Buy rating with $14 price target on Foamix, along with the following commentary around valuation.

Valuation methodology, risks and uncertainties. Our assessment of FMX101 has markedly improved in the wake of this latest data, which we believe not only increase the likelihood of regulatory approval but should also permit FMX101 to enter the U.S. market in 2020. Thus, our risk-adjusted net present value (rNPV) of FMX101 increases to $400M from the prior $300M, while our probability of success has been raised to 85% from the previous 75% to reflect the impact of the positive data from the most recently reported Phase 3 trial.

Finally, Piper Jaffray is lifting its price target on Biohaven Pharmaceuticals (BHVN) from $48 to $65 this morning after it posted positive news. Piper's analyst believes 'rimegepant could achieve $1B-plus in peak sales in acute migraine in the U.S. Further, Van Buren estimates the opportunity in migraine prevention could add another $1B-plus in peak sales. In addition, Biohaven has four other central nervous candidates candidates progressing through the clinic that will soon generate value for shareholders'.

We provided a free in-depth report on Biohaven 10 weeks ago. That report is still available free HERE.

And those are four small cap biotech stocks garnering positive analyst commentary this Wednesday. Happy Hunting.