JonesTrading analyst Soumit Roy downgraded the rating on Chimerix (CMRX – Research Report) to a Hold today, setting a price target of $8.55.
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Soumit Roy has given his Hold rating due to a combination of factors surrounding the current trading situation of Chimerix’s stock. The primary reason for the Hold rating is that the shares of Chimerix are trading very close to the acquisition offer price of $8.55 per share, which limits the potential for significant short-term gains. This acquisition agreement with Jazz Pharmaceuticals, valued at approximately $935 million, provides a clear price target that aligns with the current market valuation.
Given the proximity of the stock price to the acquisition offer, Soumit Roy has adjusted the price target to match the offer price, reflecting the limited upside potential. Additionally, the financial metrics such as the estimated fiscal year cash burn and available cash reserves provide context for the company’s current financial standing, but do not suggest immediate catalysts for a higher valuation. Thus, the Hold rating reflects a cautious approach, acknowledging the acquisition’s impact on the stock’s near-term performance.
In another report released today, Wedbush also downgraded the stock to a Hold with a $8.55 price target.