Assertio Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $3.00 price target.
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Ram Selvaraju has given his Buy rating due to a combination of factors related to Assertio Therapeutics’ recent developments and financial outlook. The company recently released data from a real-world study of Sympazan, which is used for treating seizures associated with Lennox-Gastaut syndrome. This study, presented at the American Neurological Association’s annual meeting, highlighted the drug’s applicability and provided insights into patient demographics and medication use, reinforcing confidence in its market potential.
Additionally, Selvaraju’s valuation approach, which uses a discounted cash flow model, supports a positive outlook for Assertio. The analysis considers an 11% discount rate and a 2% terminal rate of decline, resulting in a total enterprise value of $241 million and a firm value of approximately $300 million. These financial projections, alongside the company’s cash position and manageable debt levels, underpin the Buy rating with a 12-month price target of $3 per share. However, potential risks such as competition and market share challenges are acknowledged.
According to TipRanks, Selvaraju is a 5-star analyst with an average return of 26.7% and a 56.36% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Bioxcel Therapeutics, Emergent Biosolutions, and BridgeBio Pharma.