Citi Is Negative On Synergy Pharma (SGYP)

Citi maintains Sell on Synergy Pharmaceuticals (NASDAQ: SGYP), price target $3.70

Analyst Liav Abraham tells clients it is a struggle to attribute any fundamental explanation for the recent rise in SGYP shares.

Abraham comments "Since our downgrade of the stock in April 2017, our thesis of a slow Trulance launch and higher-than-anticipated operating expenses has largely been validated, with the company reporting $61mn in operating expenses in 1Q17 (vs. our and consensus $53mn/ $48mn, respectively)."

The model at Citi has been upgraded to now include higher operating expenses. Based upon revenue and expense assumptions the company should begin generating positive earnings after 2020.

FY 2017 EPS estimate falls from a loss of $0.86 to a loss of $0.97, FY 2018 EPS estimate falls from a loss of $0.50 to a loss of $0.53 and FY 2019 EPS estimate falls from a loss of $0.21 to a loss of $0.26.

For an analyst ratings summary and ratings history on Synergy Pharmaceuticals click here. For more ratings news on Synergy Pharmaceuticals click here.

Shares of Synergy Pharmaceuticals closed at $4.63 yesterday.

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