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Analyst: OvaScience's Volatility Reflects Investor Confusion

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OvaScience Inc (NASDAQ: OVAS)'s gyrating share price so far this week stems from investor "confusion" about its quarterly results and data from a study of its in vitro fertilization technology, an analyst said Wednesday.

Credit Suisse's Ravi Mehrotra maintained an Outperform rating and $70 target on the Cambridge, Massachusetts-based development stage company.

Ova shares took a big dip Tuesday before mostly recovering. They changed hands recently at $43.22, up $1.16.

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OvaScience, which is off 3 percent in the year to date, went public in 2012 and aims to boost the success rate of in vitro fertilization, which averages 30 percent.

OvaScience said Monday it expects to perform 1,000 of its Augment in vitro fertilization treatments during 2015 at international clinics, with no related revenue until the second half of the year.

But Mehrotra said his bull thesis regarding OvaScience "isn't about 2015 revenue," but rather its longer-term potential.

"If any of OVAS' products are successful they are likely to become the standard" of in vitro fertilization, Mehrotra said.

Mehrotra said success rates in recent studies posted Tuesday are "good and arguably great."

The company's Augment treatment is intended to boost the health of a woman's egg by injecting genetic material taken from her precursor egg cells.

The precursor cells were discovered in 2004 at Harvard Medical School by OvaScience co-founder Jonathan Tilly.

The company's treatment was suspended in the U.S in 2013, when regulators told OvaScience to submit an investigational drug application.

OvaScience cites market research data suggesting the current global market of $9.3 billion will grow to $21.6 billion by 2020.

Latest Ratings for OVAS

DateFirmActionFromTo
Aug 2016JP MorganMaintainsNeutral
Jan 2016OppenheimerDowngradesOutperformPerform
Jan 2016Credit SuisseInitiates Coverage onUnderperform

View More Analyst Ratings for OVAS
View the Latest Analyst Ratings

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