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Credit Suisse Sees A Potential Merger Or Acquisition In Macrocure's Future

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Credit Suisse analyst Mathew Keeler downgraded Macrocure Ltd (NASDAQ: MCUR) to Underperform from Neutral and kept a price objective of $1.00. However, the brokerage expects a possible acquisition or merger in the upcoming years.

The analyst pointed out the recent strength in share price and sees more downside pressures to hurt the stock in the absence of any fresh catalyst. Credit Suisse doesn't expect any change in the outlook of Macrocure's pipeline.

"We continue to expect that MCUR is unlikely to move forward with additional CureXcell clinical programs given the phase 3 results shared late last year and a lack of funding. It is unclear to us at this point what MCUR's next steps will be, but we see a merger with or acquisition by another company (for the purpose of transfer of intellectual property or cash) as a potential next step," the analyst explained in a note.

The brokerage said its price target is based on the company's balance sheet cash and equivalents of $27.9 million minus operating expenses of the immediate term. The analyst also pointed out key risks to his call stating that the company's intellectual property value could interest another company to make an acquisition proposal. That would have the potential to exceed his $1 price objective.

The stock traded 3. percent down on Monday.

Latest Ratings for MCUR

DateFirmActionFromTo
Jul 2016DowngradesNeutralUnderperform
Aug 2015DowngradesOutperformNeutral
Aug 2015DowngradesOutperformNeutral

View More Analyst Ratings for MCUR
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color News Downgrades Analyst Ratings

 

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