Cantor starts ObsEva at OW; PT $6

Cantor Fitzgerald launched coverage of ObsEva (NASDAQ:OBSV) with an “overweight” rating and a 12-month price target of $6. The stock closed at $1.96 on June 2.

ObsEva is building a portfolio of best-in-class assets within women’s health. “We view ObsEva’s first product, Linzagolix, as largely derisked, following an EU recommendation, and we expect approval in the U.S. and EU this year,” writes analyst Brandon Folkes. 

“We believe Linzagolix’s profile is potentially best-in-class in uterine fibroids, and will allow ObsEva to compete with larger companies and deliver a successful and capital-efficient launch,” he added. 

Mr. Folkes said Linzagolix’s unique flexible dosing options should potentially drive uptake for Linzagolix. “We believe the profile of Linzagolix will allow it to successfully compete against larger companies’ products in the uterine fibroids market.” 

In addition, Mr. Folkes said ObsEva has a product pipeline that will read out multiple catalysts during the uterine fibroid launch, and “we expect the company to be active in bringing in additional assets within women’s health. We expect commercial product growth, data readouts, and product acquisitions to drive potential upside to the stock,” he added.