Cantor Fitzgerald analyst Louise Chen initiated coverage with a Buy rating on Melinta Therapeutics Inc (NASDAQ: MLNT) last week and set a price target of $15. The company’s shares previously closed at $6.35, close to its 52-week low of $5.20.
Chen noted:
“. We are initiating coverage of Melinta’s stock with an Overweight rating and $15 PT. Upward earnings revisions and multiple expansion will drive the shares higher, in our view. We think a greater appreciation for the company’s four commercial, antibiotic drugs (Baxdela, and its growing pipeline (new drugs, international expansion, additional indications) will increase earnings estimates to levels not yet reflected in consensus expectations. Also, MLNT is considering adjacent opportunities, which means it could become a diversified hospital company. This should improve its trading multiple, in our view.”
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