Aegis Capital Downgrades Alcobra Following Q3 Results

On Monday, analysts at Aegis Capital downgraded shares of Alcobra Ltd (NASDAQ: ADHD) from Buy to Hold without a price target.

Yi Chen stated, "In view of the uncertainty from the FDA as to whether Alcobra can submit an NDA with data from one additional Phase 3 adult ADHD trial and data from the ongoing Phase 2b adolescent ADHD trial, we are downgrading the stock.”

In addition, "Given the fact that Alcobra Ltd. does not have revenue and is currently unprofitable, we use a discounted cash flow-based approach to value the shares. Potential price target could come from our estimate of a risk-adjusted net present value (rNPV) for the firm's pipeline based on a comparables analysis. We currently assume that the firm has roughly 17 million shares outstanding at end-2015 and will need to raise additional capital during 2015."

Shares of Alcobra closed Monday’s session at $3.45, down 5.74 percent.