Oppenheimer Issues a Buy Rating on Spero Therapeutics Inc

In a report released yesterday, Jay Olson from Oppenheimer assigned a Buy rating to Spero Therapeutics Inc (NASDAQ: SPRO), with a price target of $30. The company’s shares closed yesterday at $11.70.

Olson wrote:

“SPRO was awarded a BARDA contract for the oral carbapenem product candidate (SPR994) for the treatment of complicated urinary tract infections (cUTIs) caused by antibiotic resistant gram-negative bacteria. The BARDA funding amounts to $15.7M, with the potential for up to $28.5M in additional funds over 5 years. Funding will support development in cUTI but also a series of studies to assess efficacy in biodefense threats such as anthrax, plague and melioidosis (conducted by U.S. Army Medical Research Institute). Agency (DTRA) will provide $10M ($1.25M upfront + $8.75M for milestones) for nonclinical biodefense research. The total award may reach $54.2M ($15.7M+$28.5M+$10M) and is a sizable source of non-dilutive funding to support lead asset SPR994 cUTI and potential additional indications.”

According to TipRanks.com, Olson is a 2-star analyst with an average return of 1.0% and a 48.1% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Eiger Biopharmaceuticals, and Conatus Pharmaceuticals.

Spero Therapeutics Inc has an analyst consensus of Strong Buy, with a price target consensus of $28.33, implying a 142.1% upside from current levels. In a report issued on July 9, Cantor Fitzgerald also maintained a Buy rating on the stock with a $27 price target.

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The company has a one-year high of $19 and a one-year low of $9.66. Currently, Spero Therapeutics Inc has an average volume of 99.84K.

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Spero Therapeutics, Inc. is a clinical-stage biopharmaceutical company focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant, or MDR, bacterial infections. Its pipeline product candidates include SPR994, SPR741, and SPR206.