Cantor Fitzgerald initiated coverage of Journey Medical (NASDAQ:DERM) with an “overweight” rating and a 12-month price target of $9. The stock finished at $5.07 on Feb. 24.
Journey is building a portfolio of commercial and development stage dermatological assets with significant growth potential.
“Given that a number of companies have stepped away from marketing these products, we think Journey is able to bring the assets into the company at reasonable valuations and create shareholder value through the company’s deep expertise in the dermatological space,” writes analyst Brandon Folkes.
“We expect commercial product growth, data readouts and product acquisitions to drive potential upside to the stock,” he added.
In addition, Mr. Folkes said Journey is expected to generate almost $100-million in revenue within the dermatology space in 2022. At 4.0 times revenue, the company could very well justify an enterprise valuation in excess of $400-million, while the stock currently trades at a market cap of about $89-million.
