This Rare Disease Focused Stock Pipeline Is Underappreciated, Analyst Initiating Coverage Says

Cantor Fitzgerald has initiated coverage on KemPharm Inc KMPH with an Overweight rating and a price target of $20.
Per the analyst, KMPH's products, pipeline, and execution capability are underappreciated. Therefore, upward earnings-estimate revisions and pipeline advancements should drive the stock higher.
KMPH focuses on the rare central nervous system and related disorders. KMPH's AZSTARYS is the first and only approved methylphenidate-based drug containing serdexmethylphenidate (SDX) indicated for attention deficit hyperactivity disorder (ADHD).
The FDA approved the drug in March 2021.
The company has shifted its pipeline to focus on rare diseases with arimoclomol for NPC (Niemann-Pick disease) and KP1077 for rare sleep disorders.
Cantor also believes KP1077 could capture a large share of the idiopathic hypersomnia market based on potential clinical differentiation and combination usage.
Total cash of $107.4 million is expected to runway into 2026.
Price Action: KMPH shares are trading up 2.85% at $4.52 on the last check Thursday.