BTIG upgraded Histogenics Corp HSGX to Buy from Neutral, suggesting a $3.50 price target on shares. The company continued its Ph. 3 NeoCart trial with another quarter of solid patient enrollment rates.
The analysts believe the goal line is in sight and while the exact finishing month could move a month or two, they have strong confidence at this point that the trial will be completed. Histogenics reported 167 patients enrolled out of 245 required for the Ph. 3 NeoCart trial. Moreover, management increased the low-end of its YE guidance for patient enrollment completion to 190–200 from 180–200.
The analysts see the company's continuing progress on a variety of operational efforts including exploring strategic partnerships in Japan and elsewhere in Asia and the development of a one-step NeoCart through the Intrexon partnership, as favorable steps.
The $3.50 price target is based on a DCF analysis, using a 17 percent discount rate applied to PV with 29 million shares based on future capital dilution.
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