Maxim Rates NovaBay At Buy, Says 'The Eyes Have It!'

In a report published Thursday, analysts at Maxim Group initiated coverage of

with a Buy rating and a price target of $2. The company has successfully developed two proprietary non-antibiotic, antimicrobial drugs. Following a series of clinical failure, the company has now developed two compounds, Neutrox and Aganocide, which are non-antibiotic antimicrobials. This means that NovaBay can now transition to the commercial stage, focusing on execution and product launch. "These products kill a broad spectrum of bacteria quickly and completely, and destroy the damage-causing toxins they produce," the analysts said, while expecting Neutrox to receive broad FDA 510(k) approval. Another formulation, Avenova, is in the early stages of launch. Formulated to treat chronic eyelid inflammation, Avenova "has a large opportunity to create a new market in the private pay eye care space," according to Maxim Group, given the company's solid sales and distribution network. "We expect product sales increases to accelerate in the year ahead, resulting in a market value increase as investors take note of the growth potential," the analysts added. Therefore, the current low valuation of the stock, following a series of clinical disappointments, offers a good opportunity for investors to build a position.