Global Hunter Initiates Coverage of MediciNova with Speculative Buy and PT of $4

Global Hunter initiated coverage of MediciNova MNOV with a Speculative Buy rating and a price target of $4. In a research report published today, Global Hunter states, "Our Speculative Buy rating is based on data to date, near-term milestones, attractive valuation and uncertainties around the outcome of the Phase IIb MN-221 study. Our $4 fair value estimate is based the average value from a pipeline valuation analysis, which only includes value from MN-221 in the asthma indication, and discounted cash flow (DCF) analyses that examine free cash flow through 2018. Downside to our fair value estimate could occur with negative MN-221 efficacy and safety data and the inability to partner the drug." In today's trading, MediciNova added 0.38% to its value and is currently trading around $2.35.