H.C. Wainwright Thinks NovaBay Pharma’s Stock is Going to Recover

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on NovaBay Pharma (NYSE: NBY) today and set a price target of $4. The company’s shares closed yesterday at $2.50, close to its 52-week low of $2.

Selvaraju wrote:

“Valuation and risks. Our 12-month price target is derived from a discounted cash flow-based asset value of $68M for Avenova, using 15% discount rate and 2% terminal growth rate, and assuming approximately 17.2M shares outstanding at the end of 2Q19.”

According to TipRanks.com, Selvaraju is a 1-star analyst with an average return of -0.8% and a 40.2% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

Currently, the analyst consensus on NovaBay Pharma is a Moderate Buy with an average price target of $4.

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Based on NovaBay Pharma’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.15 million. In comparison, last year the company had a GAAP net loss of $1.74 million.

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NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company, which engages in commercializing and developing products for eye care. Its products include Avenova, NeutroPhase, and CelleRx. The comapny was founded by Ramin Najafi on January 19, 2000 and is headquartered in Emeryville, CA.