Roth Capital Partners launched coverage of Zafgen (NASDAQ:ZFGN) with a “buy” rating and price target of $8. The stock closed at $2.56 on April 25.
Zafgen has recently had a two major set-backs: a clinical hold placed on its lead asset, ZGN-1061, for the treatment of Type 2 diabetes on Nov. 26, 2018 and suspension of its IND filing for ZGN-1258 on March 11, 2019 for Prader-Willi syndrome based on an unexpected finding in muscle tissue in long-term rodent toxicology studies, writes analyst Yasmeen Rahimi.
“We have a high conviction that Zafgen can clear both hurdles with strong execution in the upcoming months,” she said. “Thus, we believe there will be a recovery in Zafgen shares.”
The stock traded as high as $12.35 last September.