Zafgen (NASDAQ:ZFGN) Upgraded to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Zafgen (NASDAQ:ZFGN) from a hold rating to a buy rating in a research note released on Friday morning, Zacks.com reports. Zacks Investment Research currently has $1.50 price objective on the biopharmaceutical company’s stock.

According to Zacks, “Zafgen, Inc. is a biopharmaceutical company. The Company develops therapeutics for patients suffering from obesity and obesity-related disorders. Its lead product candidate includes Beloranib, an injection that is in Phase II clinical trials for the treatment of various indications comprising obesity and hyperphagia in Prader-Willi Syndrome patients, craniopharyngioma-associated obesity, and severe obesity in the general population. Zafgen, Inc. is headquartered in Cambridge, Massachusetts. “

Several other brokerages also recently commented on ZFGN. Piper Jaffray Companies decreased their price objective on shares of Zafgen from $18.00 to $6.00 and set a hold rating on the stock in a research report on Monday, March 11th. JMP Securities raised their price objective on shares of Zafgen from $8.00 to $17.00 and gave the company a hold rating in a research report on Tuesday, March 12th. They noted that the move was a valuation call. Roth Capital assumed coverage on shares of Zafgen in a research report on Friday, April 26th. They set a buy rating and a $8.00 price objective on the stock. Wedbush restated a buy rating and set a $6.00 price objective on shares of Zafgen in a research report on Thursday, May 16th. Finally, ValuEngine downgraded shares of Zafgen from a hold rating to a sell rating in a research report on Wednesday, May 1st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $7.00.

ZFGN opened at $1.19 on Friday. The company has a quick ratio of 7.83, a current ratio of 7.83 and a debt-to-equity ratio of 0.17. Zafgen has a 1-year low of $1.17 and a 1-year high of $12.35. The company has a market capitalization of $44.05 million, a P/E ratio of -0.63 and a beta of -0.11. The stock has a 50 day simple moving average of $1.92.

Zafgen (NASDAQ:ZFGN) last released its quarterly earnings results on Thursday, May 9th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.40) by $0.05. As a group, research analysts expect that Zafgen will post -1.4 earnings per share for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Rhumbline Advisers grew its holdings in Zafgen by 66.7% during the 4th quarter. Rhumbline Advisers now owns 39,391 shares of the biopharmaceutical company’s stock worth $195,000 after acquiring an additional 15,758 shares during the period. Prudential Financial Inc. acquired a new stake in Zafgen during the 4th quarter worth about $65,000. BlackRock Inc. grew its holdings in Zafgen by 22.4% during the 4th quarter. BlackRock Inc. now owns 2,596,716 shares of the biopharmaceutical company’s stock worth $12,853,000 after acquiring an additional 474,896 shares during the period. Bank of New York Mellon Corp grew its holdings in Zafgen by 3.0% during the 4th quarter. Bank of New York Mellon Corp now owns 161,552 shares of the biopharmaceutical company’s stock worth $800,000 after acquiring an additional 4,699 shares during the period. Finally, GSA Capital Partners LLP acquired a new stake in Zafgen during the 4th quarter worth about $341,000. 84.26% of the stock is owned by institutional investors.

Zafgen Company Profile

Zafgen, Inc, a clinical-stage biopharmaceutical company, develops therapies for patients suffering from metabolic diseases comprising type 2 diabetes, Prader-Willi syndrome (PWS), and other metabolically related disorders. The company's lead product candidate is ZGN-1061, a fumagillin-class methionine aminopeptidase 2 (MetAP2) inhibitor administered by subcutaneous injection, which is in Phase 2 clinical trial and profiled for its utility in the treatment of type 2 diabetes and other related metabolic disorders.

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