Rodman & Renshaw Reiterate Buy On Synergy Pharma Following Plecanatide Phase 3 Report

Rodman & Renshaw's Raghuram Selvaraju reiterated his Buy position on Synergy Pharmaceuticals Inc SGYP with a price target of $15.00. The rating reiteration comes after further Plecanatide Phase 3 data was reported, showing positive results.

The new data "emphasizes what we view as the drug's strong likelihood of approval early next year," said Selvaraju. Due to further "top-line data release from two ongoing Phase 3 trials of plecanatide" later this year, the analyst believed the price is likely to rise from $3.26 to $15.00 over the next twelve months.

Related Link: Synergy Pharma Seen "Weighing" Options, Sell-Side Forecasts Upside Regardless Of M&A Rumors

Selvaraju did acknowledge three significant risks to the company, which include:

• Plecanatide failure in clinical trials
• Failure of plecanatide to secure approval
• "Variations in market size, penetration and pricing vs. our model estimates"

Despite Selvaraju's positive outlook for the company, the analyst estimates 2017 EPS to be $(0.29).