Market Overview

Brean Capital Initiates Coverage On Zogenix


Brean Capital initiated coverage on Zogenix, Inc. (NASDAQ: ZGNX) Monday with a Buy rating and $2.50 price target.

Analyst Difei Yang commented that “Zogenix has commercialized a controversial product, Zohydro ER, and we believe the market under-appreciates the medical value this product brings to patients and pain-treating specialists. Despite the heated debate and intense negative coverage from the media, we are impressed that the product is performing well during early launch days.

"Low-risk pipeline projects offer free options, in our view, and we believe 2015 offers multiple catalysts to lift the shares out of their currently depressed state. We view the current valuation as attractive and risk/reward profile as favorable. Our $2.50 target price is solely based on the valuation of Zohydro ER and no consideration was given to pipeline drugs Brabafen and Relday.”

The analyst note concluded that “Upcoming catalysts that may lift shares from their current depressed state: 1) sNDA approval of Abuse Deterrent Formulation of Zohydro ER with target date of January 31, 2015; 2) Zohydro ER uptake; 3) potential business development deal announcements to either expand revenue or reduce costs; 4) successful capital raise; and 5) start of Phase III trials for Dravet syndrome during Q3 2015.”

Zogenix closed Monday at $1.23, down 1.60 percent.

Latest Ratings for ZGNX

Nov 2019MaintainsBuy
Oct 2019Initiates Coverage OnBuy
Apr 2019MaintainsOutperformOutperform

View More Analyst Ratings for ZGNX
View the Latest Analyst Ratings

Posted-In: Brean Capital Difei YangAnalyst Color Price Target Initiation Analyst Ratings


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