Canaccord Genuity (TSX:CF, LSE:CF) analysts have reiterated a 'Buy' rating and issued an $11 price target for Zynerba Pharmaceuticals (NASDAQ:ZYNE) Inc in a note to clients.
The brokerage firm recently hosted Zynerba CEO Armando Anido and CFO Jim Fickenscher at its Canaccord Genuity Growth Conference in Boston. The company also reported its second-quarter results on Wednesday, August 10, 2022.
Zynerba's transdermal cannabidiol gel Zygel is currently in a confirmatory Phase 3 trial (RECONNECT) for Fragile X syndrome (FXS), and the company recently had an encouraging open-label Phase 2 (INSPIRE) trial in 22.q.112 deletion syndrome, the Canaccord analysts noted.
READ: Zynerba Pharmaceuticals reports Q2 results and provides operational update
“The key takeaways for us from our event were that [Zynerba]: 1) remains on track to report RECONNECT data in 2H23; 2) expects to interface with the FDA on its next steps on 22q during 2H22; 3) has a cash runway into the end of 2023/early 2024 (that takes the company through the important RECONNECT data),” they said
Regarding the second-quarter earnings report, the Canaccord analysts noted that the company’s operating expenses of $300,000 were slightly lower than they had projected, but that they would not make any major changes to their model.
The analysts have assigned probabilities for approval and year of launch for both FXS (60% by the end of 2025) and 22q (33% by the end of 2027).
“We note clinical data catalysts are still some time away. That said, we believe the stock remains significantly undervalued if ZYNE is able to successfully execute on its plans for Zygel, and we are reiterating our 'Buy' rating,” the analysts concluded.
Zynerba shares traded at $1.28 on Thursday afternoon, offering more than 750% upside to the Canaccord target price.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel