Market Overview

Goldman Believes TherapeuticsMD Is 'Revitalizing Women's Health,' Initiates With Buy

Watch These 7 Huge Call Purchases In Wednesday Trade
TherapeuticsMD Makes Innovation In Compliance Packaging For Its Prenatal Vitamins
Related XBI
Dan Nathan's SPDR S&P Biotech ETF Trade
Exclusive: SunTrust Managing Director Shares Thoughts On Drug Pricing, Impact On Biotech
Past, Present, And Future: Biotech, Clinton, And 2017 (Seeking Alpha)

TherapeuticsMD Inc (NYSE: TXMD), a small-cap women's healthcare product company might be “revitalizing women’s health.” At least, this is what analysts at Goldman Sachs believe. The firm initiated coverage of the stock with a Buy rating and 12-month price target of $10.00, which implied an upside of more than 50 percent from Friday’s closing price.

While the SPDR S&P Biotech (ETF) (NYSE: XBI) has lost about 30 percent since December 29, TherapeuticsMD has tumbled about 40 percent, even though no significant news transcended. The experts think the company “has been unfairly classified as a biopharma whereas it faces a more consumer-like market opportunity.”

Related Link: Jefferies' Best Biotech Ideas For 2016 (And Beyond)

They see the stock returning to prior levels on the back of:

1) An emphasis on well developed markets with elevated unmet needs

2) A product portfolio centered on women’s health, which is a core competency

3) “A late stage differentiated pipeline.”

These elements support the analysts’ optimistic outlook for EPS growth, which suggests TherapeuticsMD is both under-valued and under-appreciated.

Shares of TherapeuticsMD were trading up more than 10 percent on Monday afternoon.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for TXMD

Apr 2016Goldman SachsInitiates Coverage onBuy
Jun 2015GuggenheimInitiates Coverage onBuy
Jul 2014FBR CapitalInitiates Coverage onOutperform

View More Analyst Ratings for TXMD
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Price Target Initiation Analyst Ratings Trading Ideas General


Related Articles (XBI + TXMD)

View Comments and Join the Discussion!