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

TherapeuticsMD Inc 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) 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.