Corbus Pharmaceutical Holdings, Inc. (CRBP)

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Analyst Actions: RBC Starts Corbus Pharmaceuticals at Outperform, Speculative Risk, With $23 Price Target

12/07/2018 08:44 AM EST


08:44 AM EST, 12/07/2018 (MT Newswires) -- RBC initiated coverage of Corbus Pharmaceuticals Holdings (CRBP), assigning it an outperform, speculative risk rating and a $23 price target.

Corbus' stock closed Thursday at $6.66 -- a "valuation [that] substantially underappreciates" the potential of its lead drug, lenabasum, RBC said in a note to clients. The stock is up almost 5% in premarket trading.

The brokerage touted lenabasum's potential, based on data and feedback showing a 55% probability of "ultimate success" in the drug's treatment of systemic sclerosis and a 60% success probability in its treatment of dermatomyositis. Those two diseases are "currently treated with poorly-tolerated, repurposed immunosuppressive agents, and ... the bar is low for any novel option."

Lenabasum, "a uniquely differentiated treatment option for immune disease," could "drive [more than] $1.2 [billion] in out-year revenue" for Corbus, according to RBC's analysis.

Price: 6.99, Change: +0.33, Percent Change: +4.95