Zynerba Pharmaceuticals Received its Third Buy in a Row

After Cantor Fitzgerald and Canaccord Genuity gave Zynerba Pharmaceuticals (NASDAQ: ZYNE) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Oren Livnat reiterated a Buy rating on Zynerba Pharmaceuticals (NASDAQ: ZYNE) today and set a price target of $23. The company’s shares closed yesterday at $10.12.

Livnat noted:

“Valuation and risks. Our $23 target is based on a 35% probability of success weighted DCF including ZYN002 peak $700M U.S. sales, a 14% WACC discount, and negative 15% terminal growth beyond 2028 (balancing the loss of potential orphan exclusivity with IP out to 2030 and beyond). We include assumed dilution in our DCF (17.5M shares vs. current 13.6M). Zynerba had $52.1M cash at end-1Q18 (no debt) which the company states should last in 2H19.”

According to TipRanks.com, Livnat is a 1-star analyst with an average return of -1.3% and a 52.3% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Pacira Pharmaceuticals, Jazz Pharmaceuticals, and Agile Therapeutics.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Zynerba Pharmaceuticals with a $20.33 average price target, implying a 100.9% upside from current levels. In a report issued on July 5, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $20 price target.


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Based on Zynerba Pharmaceuticals’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $12.31 million. In comparison, last year the company had a GAAP net loss of $8.32 million.

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Zynerba Pharmaceuticals, Inc. operates as a clinical stage specialty pharmaceutical company. It engages in the development and commercialization of transdermal pharmaceutically-produced cannabinoid treatments for rare and near-rare neurological and psychiatric, or neuropsychiatric, disorders in patients with high unmet medical needs.