Portage Biotech Inc (PRTG – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Robert Burns from H.C. Wainwright remains neutral on the stock and has a $6.00 price target.
Robert Burns’ Buy rating for Portage Biotech Inc stems from a thorough analysis of the company’s fiscal second-quarter results and its future prospects. Despite the net loss reported that aligned close to estimates, Burns sees the company’s cash reserves as sufficient for continued operations into 2024. He acknowledges the company’s higher operating expenses but also factors in the potential clinical catalysts expected in the next 18 months. These catalysts, combined with the recent acquisition of adenosine pathway-targeted agents, present opportunities for significant valuation upside that are not yet accounted for in the firm’s discounted cash flow (DCF) model.
In valuing Portage Biotech, Burns employs a DCF-based valuation methodology with conservative assumptions, including a 12% discount rate and a modest terminal growth rate. The valuation also includes a 15% probability of approval for a key pipeline candidate, reflecting the inherent clinical and regulatory risks. Despite lowering the price target to $6 from $9, the new target still suggests upside potential from current levels. Burns’ rating is cautiously optimistic, acknowledging risks such as negative clinical outcomes, regulatory hurdles, market penetration challenges, partnership dependencies, and potential dilution, yet he maintains that the company’s recent strategic acquisitions and pipeline advancements justify a Buy rating.
Burns covers the Healthcare sector, focusing on stocks such as BioNTech SE, Exelixis, and Cogent Biosciences. According to TipRanks, Burns has an average return of -37.8% and a 15.40% success rate on recommended stocks.
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Portage Biotech Inc (PRTG) Company Description:
Portage Biotech, Inc. is engaged in researching & developing pharmaceutical and biotech products through to clinical proof of concept with an initial focus on unmet clinical needs and orphan drugs. It sells and licenses the products to large pharmaceutical companies for further development and commercialization. The company was founded in 1973 and is headquartered in Toronto, Canada.
Read More on PRTG:
- Portage Biotech Reports Results for Fiscal Quarter Ended June 30, 2023, and Business Update
- Portage Biotech presents updates on its iNKT, adenosine programs at SITC
- Portage Biotech Presents Updates on its iNKT and Adenosine programs at the Society for Immunotherapy of Cancer’s (SITC) 38th Annual Meeting
- Portage Biotech files to sell 9.63M ordinary shares for holders
