“The merit of all things lies in their difficulty.” ― Alexandre Dumas, The Three Musketeers
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Here are two analyst calls this afternoon which could buoy the small cap biotech names into the close and into tomorrow's market open.
Viveve Medical (VIVE) has caught the attention of two analyst firms this afternoon. Both Maxim Group ($9 price target) and Mizuho Securities ($4 price target) have reissued Buy ratings on this Denver based small cap concern that makes medical devices for the non-invasive treatment of various post-partum conditions. Here is what is behind Mizuho's valuation calculation
“We project total company sales of $134.6 mil in 2028 and we estimate 2028 FCF of $51.2 mil. We assume a terminal value of 3.5x estimated 2028 FCF and we use a 10.0% discount rate to derive a $4 per share price target. In addition, we also apply a peer group analysis and precedent transaction analysis to value VIVE. We apply a 3x EV/Sales multiple to our estimated 2022 sales figure of $69.0 mil discounted back using a 10% discount rate, to derive a $4 PT.”
The firm reported solid quarterly results this morning.
A different analyst at Maxim Group is bullish on Actinum Pharmaceuticals (ATNM) late today, reiterating a Buy rating and $3 price target on the shares which go for under a buck a share currently. The analyst shared his view of a conference call that just took place
“Actinium held a conference call to discuss its planned P2 program for Actimab-A in patients with acute myeloid leukemia (AML) with minimal residual disease (MRD). The call included an overview of the clinical program with KOL Dr. Medical Center. Clinical trial design is discussed below. Key takeaways from the call: 1. Large Market, unmet need – MRD positive (MRD+) AML drives high rates of relapse. 2. Consolidation therapy needs a new option – Chemo is toxic, patients are already frail, relapse rate is high. Actimab is highly targeted to CD33, Ac 225 delivers alpha particles that kill AML cells…low dose, stays in the bone marrow, highly effective, safer option. 3. Signal from regulators, MRD as a target – MRD is being recognized as a driver of relapse in blood cancers. Blincyto was approved for MRD in ALL. 4. Agnostic – Actimab kills cancer cells independent of cytogenetics or genetics.”
It should be noted that on May 29th, Oppenheimer assigned a new Buy rating and $5 price target on the stock after sitting down with management. It seems either that leadership at the company is beyond charming or the market is mispricing the company's prospects based on recent analyst commentary. Actinum is focused on developing antibodies primed with short-acting radioactive particles meant to kill cancer cells through targeted irradiation.
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