Mizuho Securities Thinks Achaogen’s Stock is Going to Recover

In a report released today, Difei Yang from Mizuho Securities maintained a Buy rating on Achaogen (NASDAQ: AKAO), with a price target of $20. The company’s shares closed yesterday at $8.34, close to its 52-week low of $7.43.

Yang said:

“We attended the investor lunch hosted by Achaogen yesterday in New York. Two key opinion leaders presented their perspective on current treatment options for infections as well as how ZEMDRI (plazomicin) may fit into their treatment algorithm. Management also discussed the upcoming commercial launch of the drug and the market opportunity in the U.S. The discussion reinforced our view that the use of plazomicin is unlikely being restricted to CRE-related cUTI, rather physicians are likely using it for treating all CRE infections. The drug appears positively differentiated and holds strong potential in a market where innovation and capital investment has been limited in recent years.”

According to TipRanks.com, Yang is a top 100 analyst with an average return of 24.1% and a 55.0% success rate. Yang covers the Healthcare sector, focusing on stocks such as Nightstar Therapeutics Limited, Alder Biopharmaceuticals, and Audentes Therapeutics.

Currently, the analyst consensus on Achaogen is a Strong Buy with an average price target of $19.

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The company has a one-year high of $24.90 and a one-year low of $7.43. Currently, Achaogen has an average volume of 1.31M.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AKAO in relation to earlier this year. Last month, Kenneth Hillan, the President of Achaogen and President of R&D of AKAO bought 177,935 shares for a total of $1,084,807.

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Achaogen, Inc. is a biopharmaceutical company, which engages in the research, development, and commercialization of antibacterial treatments for multi-drug resistant (MDR) gram-negative infections. It offers Plazomicin to treat bacterial illness, such as complicated urinary tract infection, blood stream infections, and other infections due to MDR Enterobacteriaceae. The company was founded by Nathaniel E. David in June 2002 and is headquartered in South San Francisco, CA.