Needham initiates Aerie Pharmaceuticals with a Buy rating, $26

STA Research
by: STA Research

Needham & Company LLC initiates Aerie Pharmaceuticals with a Buy rating and $26 target on the stock.

Stocktargetadvisor has a average target of $27 and a consensus Buy rating on the stock.

STA Research’s analysis of the stock is Very Bearish with a score of 0 out of 10, where 0 is very bearish and 10 very bullish.

 

What to like

:
There is nothing we particularly like

 

What to not like:

High volatility
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Highly leveraged
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and
management statements. Sometimes this is high because the company is trying to grow aggressively.
Negative cash flow
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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