Cara Therapeutics Inc (CARA)

[king oil]

Cara Therapeutics Assumed At Buy By Janney, Price Target At $27/Share

12/20/2018 (MT Newswires) -- Cara Therapeutics (CARA) received an investment rating of buy Thursday from Janney Montgomery Scott as analyst Esther Hong assumed coverage of the biopharmaceutical company's stock with a price target of $27 per share, more than double the stock's Wednesday closing price of $13.36.

In a note to clients, Janney highlighted Cara's lead program, IV-Korsuva, which is in two ongoing phase 3 trials for moderate-to-severe pruritus in patients with chronic kidney disease on hemodialysis (CKD-aP). Janney noted IV-Korsuva has the potential to be the first approved treatment for CKD-aP.

The firm noted Cara is also evaluating oral Korsuva in pre-dialysis CKD-aP patients, a larger population for which there is no Food & Drug Administration-approved therapy. It added that expansion opportunities include chronic liver disease-associated pruritus, atopic dermatitis and psoriasis.

In turn, Janney said, "2019 will be a transformative year with [phase] 3 data kicking off Korsuva for potential use across multiple indications starting with CKD-aP."

The firm said its price target on the stock of $27 each is based on discounted cash flows.

At Janney, the stock was previously covered by Ken Trbovich, who also had a buy rating and a $27 price target on the stock as of early November.