Analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on EyePoint Pharmaceuticals, retaining the price target of $22.00.
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Yi Chen has given his Buy rating due to a combination of factors related to EyePoint Pharmaceuticals’ ongoing clinical trials and potential market opportunities. The company has successfully completed enrollment for its Phase 3 LUCIA trial, which is part of the pivotal program for DURAVYU, a treatment for wet AMD. The rapid enrollment in both the LUCIA and LUGANO trials indicates strong interest from the medical community, and interim safety data has been consistent with previous trials, which is promising for the drug’s future prospects.
Furthermore, the valuation of EyePoint Pharmaceuticals is supported by a discounted cash flow analysis, estimating the firm’s market value at $1.48 billion, with a significant portion attributed to DURAVYU. The analyst has set a 12-month price target of $22 per share, factoring in the potential approval and commercial success of DURAVYU. However, risks such as clinical trial failures, regulatory hurdles, and market competition are acknowledged, but the overall outlook remains positive, justifying the Buy rating.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $26.00 price target.