In a report released today, Sean Lee CFA from H.C. Wainwright maintained a Hold rating on Cytosorbents (CTSO – Research Report), with a price target of $1.00.
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Sean Lee CFA has given his Hold rating due to a combination of factors related to Cytosorbents’ current regulatory challenges and financial outlook. The company recently received a denial from the FDA regarding their DrugSorb-ATR application, which has created uncertainty about the resolution of undisclosed issues. The management is hopeful about resolving these issues through further discussions with the FDA, but the lack of clarity on the specifics makes it difficult to predict the outcome of any appeal or subsequent application.
Despite these regulatory hurdles, the company’s core business in Europe and other regions remains stable and is not expected to be impacted. With a reported cash position of $15.6 million and efforts to reduce cash burn, management is optimistic about reaching operational cash breakeven by the end of the year. The valuation remains cautious, with a 12-month price target of $1.00 based on a blend of price-sales and price-earnings multiples, reflecting the various risks including clinical, commercial, and financial uncertainties.
Lee CFA covers the Healthcare sector, focusing on stocks such as Alphatec Holdings, Cytosorbents, and Plus Therapeutics. According to TipRanks, Lee CFA has an average return of -2.4% and a 30.06% success rate on recommended stocks.