By Sam Boughedda
Investing.com — Ocuphire Pharma Inc (NASDAQ:OCUP) shares are soaring Wednesday after H.C. Wainwright initiated coverage of it with a buy rating.
Analyst Matthew Caufield set a price target of $26 on the stock, outlining four reasons for doing so.
The company's shares are currently 38% above Tuesday's close at $4.81 but initially rose to a high of $5.50.
The first of the four reasons for the rating is Ocuphire's phase 3 MIRA-2 trial's positive topline results for Nyxol. The analyst said that it presents an "opportune timing to get into the name prior to further program validation," which it expects in the near term.
He also said a key differentiation of using Nyxol was another positive for the stock, adding that Ocuphire's APX3330 treatment for diabetic retinopathy is undervalued.
"With Ocuphire completing a reverse merger with legacy oncology platform Rexahn Pharmaceuticals, and listing on NASDAQ in November 2020, we maintain investors have yet to fully engage with Ocuphire’s Nyxol story and upcoming catalysts," Caufield said.
On Tuesday, Ocuphire told investors it has enrolled its first patients in the second phase 3 trial of Nyxol.