Analyst Michael Okunewitch from Maxim Group maintained a Buy rating on Lineage Therap and keeping the price target at $3.00.
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Michael Okunewitch has given his Buy rating due to a combination of factors, primarily focusing on Lineage Cell Therapeutics’ strategic advancements and financial positioning. The recent partnership with William Demant Invest is a significant driver, as it provides up to $12 million in funding for the preclinical development of ReSonance, a promising program targeting hearing loss. This collaboration not only supports the advancement of ReSonance but also mitigates the company’s cash burn, aligning with Lineage’s strategy of capital efficiency.
Furthermore, the collaboration brings in external expertise from the Eriksholm Research Centre, enhancing the program’s potential success as it moves towards clinical trials. The valuation model considers future royalties from OpRegen in the US and Europe, with risk adjustments for development stages and clinical trials. A 30% discount rate is applied to various financial models, leading to a 12-month price target of $3.00, reinforcing the Buy recommendation.
Okunewitch covers the Healthcare sector, focusing on stocks such as ATAI Life Sciences, Lineage Therap, and Ocugen. According to TipRanks, Okunewitch has an average return of -11.1% and a 34.96% success rate on recommended stocks.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $9.00 price target.