H.C. Wainwright analyst Swayampakula Ramakanth has maintained their bullish stance on ACTU stock, giving a Buy rating on July 18.
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Swayampakula Ramakanth’s rating is based on promising developments in Actuate Therapeutics’ clinical trials, particularly with their lead candidate, elraglusib, in treating Ewing sarcoma. The completion of the Phase 1 trial showed encouraging results, with some patients achieving complete responses, which is significant given the refractory nature of the disease. This positive outcome has prompted the company to plan a Phase 2 study, which could further validate elraglusib’s efficacy and potentially lead to regulatory approval.
Furthermore, the valuation of Actuate Therapeutics is supported by a risk-adjusted net present value analysis, considering projected future revenues from elraglusib. The analysis incorporates a 12% discount rate and accounts for the company’s cash reserves, leading to a 12-month price target of $20.00 per share. Despite inherent risks such as financial, clinical, and regulatory challenges, the potential upside from successful trials and market approval justifies the Buy rating.
According to TipRanks, Ramakanth is a 4-star analyst with an average return of 4.4% and a 39.44% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Corcept Therapeutics, Ocugen, and Unicycive Therapeutics.