Analyst’s Recommendation on Relypsa Inc (NASDAQ:RLYP)

Analysts are weighing in on how Relypsa Inc (NASDAQ:RLYP) , might perform in the near term. Wall Street analysts have a much favorable assessment of the stock, with a mean rating of 1.7. The stock is rated as buy by 3 analysts, with 8 outperform and 1 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 14.00 analysts offering adjusted EPS forecast have a consensus estimate of $-1.52 a share, which would compare with $-0.95 in the same quarter last year. They have a high estimate of $-1.34 and a low estimate of $-1.66. Revenue for the period is expected to total nearly $7.38M.

For the full year, 13.00 Wall Street analysts forecast this company would deliver earnings of -5.91 per share, with a high estimate of $-5.39 and a low estimate of $-6.45. It had reported earnings per share of $-4.39 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $32.40M versus 18.55M in the preceding year.

The analysts project the company to maintain annual growth of around 2.40% percent over the next five years as compared to an average growth rate of 25.56% percent expected for its competitors in the same industry.

Among the 12 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for RLYP is $32.00 but some analysts are projecting the price to go as high as $51.00. If the optimistic analysts are correct, that represents a 170 percent upside potential from the recent closing price of $18.86. Some sell-side analysts, particularly the bearish ones, have called for $9.00 price targets on shares of Relypsa Inc (NASDAQ:RLYP) .

In the last reported results, the company reported earnings of $-0.95 per share, while analysts were calling for share earnings of $-1.00. It was an earnings surprise of 5.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Relypsa, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of polymeric medicines for patients with conditions that are overlooked and undertreated and can be addressed in the gastrointestinal tract primarily in the United States. The company offers Veltassa (patiromer), a non-absorbed potassium binding polymer for the treatment of hyperkalemia. It has license agreement with Vifor Fresenius Medical Care Renal Pharma Ltd. for developing and commercializing Veltassa outside the United States and Japan. The company was founded in 2007 and is headquartered in Redwood City, California.