HC Wainwright lowered the target on Synlogic Inc. to $7 from $9, and maintained the Buy rating on the company.
Our view of the stock is Slightly Bearish with a score of 3.3 out of 10, where 0 is very bearish and 10 very bullish.
What to like:
Underpriced compared to book value The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason. Positive free cash flow The company had positive total free cash flow in the most recent four quarters. Underpriced on free cash flow basis The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
What to not like:
Low market capitalization This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future. Poor risk adjusted returns This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution. Below median dividend returns The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income. Overpriced compared to earnings The stock is trading high compared to its peers on a price to earning basis and is above the sector median. Negative cashflow The company had negative total cash flow in the most recent four quarters. Low Earnings Growth. This stock has shown below median earnings growth in the previous 5 years compared to its sector.
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