Wedbush: Y-mAbs Could Attract Investor Attention As Market Volatility Grows

Shares of Y-mAbs Therapeutics, Inc YMAB seem undervalued, given the market opportunities of the company’s core, late stage assets as well as upside potential from its label expansions and earlier-stage pipeline efforts, according to Wedbush.

The Analyst

Wedbush’s David Nierengarten initiated coverage of Y-mAbs Therapeutics with an Outperform rating and a price target of $38.

The Thesis

Markets are likely to become increasingly volatile over the next 12 months, due to macroeconomic and political factors. Against this backdrop, stocks like Y-mAbs Therapeutics, which have advanced assets as well as upside potential, should be “particularly attractive for investors,” Nierengarten said in the initiation note.

Two of the company’s lead candidates, naxitamab and radiolabeled 131I-omburtamab, have exhibited positive results in patients with neuroblastoma.

The analyst expects the Biologics License Application (BLA) filings, both of which are scheduled for the fourth quarter, to be successful and for both candidates to be approved in 2020.

Y-mAbs has label expansion opportunities in the near term, into front-line high risk and retreating neuroblastoma for both the candidates and additionally osteosarcoma for naxitamab, Nierengarten mentioned.

The company’s pipeline includes a therapeutic cancer vaccine, bispecific antibody programs and Lu177-omburtamab. Y-mAbs earlier stage efforts, particularly radiolabeled Lu177-omburtamab, “could provide significant upside as it progresses through the clinic to treat B7-H3 positive CNS/LM (central nervous system / leptomeningeal metastasis) tumors in adults,” Nierengarten wrote.

Price Action

Shares of Y-mAbs Therapeutics were up 168% to $25.91 Wednesday.

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