JMP Securities analyst Reni Benjamin has reiterated their neutral stance on DCPH stock, giving a Hold rating on May 10.
Reni Benjamin has given his Hold rating due to a combination of factors surrounding Deciphera Pharmaceuticals’ financial dynamics and the acquisition offer from Ono Pharmaceutical Co., LTD. The proposed acquisition is a significant influence on the current valuation, with the offer price of $25.60 per share being considered a fair reflection of the company’s value. This offer represents a considerable premium over the previous closing price and the 30-day volume-weighted average price (VWAP), which suggests that the market may not offer any further competitive bids for the company.
Furthermore, the financial results of Deciphera for the first quarter of 2024, which showed revenues slightly below expectations and lower-than-anticipated expenses, contribute to the Hold rating. Despite these variances, the company’s cash position remains strong. The anticipated closing of the Ono acquisition in the third quarter of 2024 leads to the expectation that the stock will trade close to the offered acquisition price as the deal’s finalization approaches. With no other bidders expected and the acquisition priced in, the Hold rating implies that the stock is already trading at a level that accurately reflects its near-term potential in light of the current circumstances.
In another report released on May 10, Stifel Nicolaus also downgraded the stock to a Hold with a $26.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Deciphera Pharmaceuticals (DCPH) Company Description:
Deciphera Pharmaceuticals, Inc. operates as a biotechnology company which develops and manufactures kinase inhibitor treatments for cancer by cutting off the ability of tumor cells to thrive and spread. The company designs a drug candidate, DCC-2618, to inhibit the full spectrum of mutant or amplified KIT and PDGFRa kinases that drive cancers such as gastrointestinal stromal tumors (GIST), advanced systemic mastocytosis (ASM), gliomas, and other solid tumors. It also develops two other clinical-stage drug candidates, DCC-3014 and rebastinib, as immuno-oncology kinase, inhibitors targeting the kinases CSF1R, and TIE2 kinas. The company was founded by Peter A. Petillo and Daniel L. Flynn in November 2003 and is headquartered in Waltham, MA.
