Oppenheimer Thinks It's Time To Buy Ovascience

Oppenheimer commented on OvaScience Inc OVAS Thursday and maintained an Outperform rating with a $60 price target.

Analyst Rohit Vanjani felt that the recent 40 percent decline in the stock was "primarily due to a misunderstanding from the data presentation at the Society for Reproductive Investigation (SRI)."

"A physician from the Canadian clinic offering AUGMENT presented efficacy data that we believe is positive. However, there has been confusion on the results, specifically with respect to AUGMENT's reported pregnancy rate," according to Vanjani.

The analyst indicated that investors may have missed some key data points that were favorable for AUGMENT which included "the number of later-stage embryos that were produced with AUGMENT as compared to normal IVF."

Vanjani noted that the "data indicate that one AUGMENT cycle is creating roughly the same number of embryos as a summed total of multiple IVF cycles," which was believed to be a "positive result."

The analyst note also claimed that when sifting through the data, pregnancy rates were favorable and that for the three arrested embryo cycles, two resulted in a pregnancy, thus "highlighting AUGMENT's success."

The population tested was also "difficult" with challenging factors that included "age, number of failed IVF cycles, embryo quality, BMI, hormone levels, follicle count, and personal diagnosis," according to the note.

Vanjani concluded that the "share pullback creates [a] buying opportunity."

OvaScience recently traded at $32.82, up 5.36 percent.