Cantor Fitzgerald launched coverage of Ocugen (NASDAQ:OCGN) with an “overweight” rating and price target of $4.50. The stock closed at $2.17 on June 1.
Ocugen is a clinical-stage biotechnology company focused on developing novel gene and cell therapies, biologicals, and vaccines.
“We believe the peak sales potential of COVAXIN and Ocugen’s modifier gene therapy pipeline are underappreciated, and we expect upward earnings estimate revisions to move Ocugen’s stock higher,” writes analyst Jennifer Kim.
Ms. Kim pointed to the company’s visibility and timely progress on the U.S. development of COVAXIN, a COVID-19 vaccine; clinical updates from the Phase 1/2 trial for OCU400, a modifier gene therapy for inherited retinal diseases, starting in the third quarter of 2022; and an advancing early-stage pipeline, with OCU410 and OCU200.
At the end of the latest first quarter, Ocugen had $129.9-million in cash, cash equivalents, and restricted cash, “which will not meet the company’s capital requirements over the next 12 months, as noted in Ocugen’s latest 10-Q filing,” Ms. Kim said.
“Our price target considers a raise in the first quarter of 2023, which we expect will get the company through key milestones.”