Esperion Therapeutics Inc (ESPR) Study Data Could Provide Both Bulls and Bears Case: Stifel

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Stifel reduced price target to reflect implied delays in the de-risking event, as well as increased R&D expenditure for upsized trials

Stifel analyst Thomas Shrader evaluated Esperion Therapeutics Inc. (NASDAQ:ESPR) post 035 study data release conducted for testing ETC-1002 in low dose statins. In its updated thesis, the research firm stated that the data announced could provide case for both bulls and bears, leaving them happy.

The shares traded in green on Thursday, October 13, rising about 5.6% during the active trading session. Mr. Thomas Shrader maintained his Buy rating but he used the updated data as an opportunity to lower price target by 53.13% from $64 to $30.

According to Thomas, the data was overall positive. The results indicated 22% reduction in LDL-C relative to placebo along with a benign safety profile. However, the results also indicated a downside, whereby unexpected 9% increase was included in 22% of the placebo group. 

Also, the firm noted that the timeline that would serve as a major de-risking event in the stock has been pushed out. The analyst further stated that in either cases, whether the investors hate the stock due to its complexity or love the stock for having a reasonable chance in the huge market, the results released on Thursday would not change their minds.

The analyst further commented that the above mentioned reduction in price target was undertaken to reflect implied delays in the news as well as increased R&D expenditure for covering upsized trials. Also, PCSK9 CVOT readouts could serve as the next major catalyst for the $280.19 million business over the period of next six months.

The Street analysts have affirmed the stock at $22.85, reflecting its upside potential of 75.63% over the last close. Also, the 10 analysts covering the stock at the Street have given four Buy, five Hold, and one Sell ratings for Esperion.

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