Rexahn Pharmaceuticals, Inc. (REXN)

[Theo]

Yup. UPDATE: MLV & Co Initiates Coverage On Rexahn Pharmaceuticals On Oncology Pipeline With Strategic Flexibility



UPDATE: MLV & Co Initiates Coverage On Rexahn Pharmaceuticals On Oncology Pipeline With Strategic Flexibility
Benzinga
By Dwight Einhorn 2 hours ago

In a report published Friday, MLV & Co analyst Vernon T. Bernardino initiated coverage on Rexahn Pharmaceuticals, Inc. (NYSE: RNN) with a Buy rating and $1.25 price target.

In the report, MLV & Co noted, "We initiate coverage of Rexahn Pharmaceuticals Inc. (RNN) with a BUY rating and $1.25 PT. We believe investors undervalue Rexahn's clinical-stage oncology assets, which have demonstrated activity in multiple tumor types. We anticipate Rexahn will out-license commercialization of each asset in 1-2 types of cancer, with revenue streams from each worth $0.10- $0.25/sh, and upside potential with advancement in at least 1-2 other cancers ($0.10-$0.50/sh). As a result, we believe the premium valuations ascribed to other oncology-focused companies (EV of $285MM), whose assets we note do not have the broad activity of Rexahn's compounds, should be extended to Rexahn.

"Thus, using DCF analysis, we believe there is upside to $0.91/sh, and by comparable EV analysis, we look for upside to $1.59/sh, which we averaged to $1.25/sh. Lastly, we believe the overhang of a near-term capital raise now passed. With $36MM in cash and our forecast for $34MM in OpEx through 2017, we believe the material risk of shareholder dilution minimal. Therefore, with multiple catalysts anticipated through 2015, we believe current prices offer attractive entry points and would be buyers of the stock."

Rexahn Pharmaceuticals closed on Thursday at $0.70.
Latest Ratings for RNN
Date Firm Action From To
Mar 2015 MLV & Co Initiates Coverage on Buy
Sep 2014 Laidlaw & Co. Initiates Coverage on Buy
Mar 2014 Brinson Patrick Initiates Coverage on Outperform