In a recently released analyst research report, H.C. Wainwright biotech analyst, Andrew Fein, reiterated their buy rating on shares of Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) with a price target that suggests some noteworthy upside to come.
While many don’t consider Corbus Pharmaceuticals Holdings to be a cannabis-related company, the company’s pipeline drug, called “Anabasum,” is a “novel synthetic oral endocannabinoid-mimetic drug designed to resolve chronic inflammation and fibrotic processes.” As a endocannabinoid-mimetic drug, it binds with the body’s CB2 cannabinoid receptors in order to take effect.
Andrew Fein’s price target of $24.00 USD per share implies a potential upside of approximately 308.16% based on the last traded price of $5.88 USD per share on the NASDAQ.
According to Andrew Fein, “Our price target of $24/share is based on an equally weighted composite of: (a) $23.97/share, as a 35x multiple of taxed and diluted $5.63 discounted back to FY19 at 18% (in line with the expected P/E multiple and discount rate of an early development stage biotechnology company); and (b) an NPV of $23.84/share (discounted cash flow analysis using a 16% discount rate and 2% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”
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