Analyst Brandon Folkes of H.C. Wainwright maintained a Buy rating on Zevra Therapeutics, retaining the price target of $26.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brandon Folkes has given his Buy rating due to a combination of factors that highlight the potential growth and value of Zevra Therapeutics. The recent submission of a Marketing Authorization Application to the European Medicines Agency for arimoclomol, known as Miplyffa in the U.S., marks a significant step in expanding the market for the treatment of Niemann-Pick Disease Type C. This move is expected to unlock substantial value for the company, as the European market for this treatment could rival the U.S. in terms of revenue. The filing came earlier than anticipated, indicating a proactive approach by the company, which strengthens the case for a Buy rating.
Additionally, Zevra Therapeutics has demonstrated success in converting patients from their Expanded Access Program to paying customers in the U.S., and similar success is anticipated in Europe. The company’s strong financial position supports potential commercial partnerships, and the mature European market presents a promising opportunity for growth. Despite past challenges with the EMA, the new filing is robust, backed by extensive patient data, and addresses previous concerns, increasing the likelihood of approval. These factors, combined with undervaluation based on U.S. prospects alone, suggest that the stock is poised for re-rating as the European opportunity becomes more apparent to investors.
In another report released on July 22, Roth MKM also maintained a Buy rating on the stock with a $21.00 price target.