H.C. Wainwright launched coverage of TRACON Pharmaceuticals (NASDAQ:TCON) with a “buy” rating and $2 price target. The stock closed at 57 cents on Aug. 29.
TRACON is developing targeted therapeutics for cancer, ophthalmology and fibrotic diseases.
Analyst Edward White writes that TRACON is currently trading with a “negative enterprise value and a binary event within nine months that could have a major impact on the stock price.”
While the company has had two disappointing study results since December 2018, both for TRC105, Mr. White said he believes the current product pipeline has value and that the stock should be trading above its current cash level.
“We think at the current stock price that the shares represent a good buying opportunity for investors with a speculative strategy,” he added.