In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Emergent Biosolutions, with a price target of $15.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ram Selvaraju has given his Buy rating due to a combination of factors including Emergent BioSolutions’ recent contract modification for their ACAM2000 vaccine, which highlights the ongoing demand for their public health preparedness solutions. The company has secured a $56 million contract to supply this vaccine to the U.S. government, with deliveries starting this month, contributing to projected sales exceeding $120 million this year.
Additionally, the valuation of Emergent BioSolutions is supported by a discounted cash flow analysis, which considers an 11% discount rate and a 1% terminal rate of decline, leading to a total enterprise value of approximately $1.13 billion. This analysis, along with the company’s strategic positioning in well-established markets and recent contract awards, underpins the 12-month price target of $15 per share. However, potential risks such as increased generic competition and challenges in securing further government contracts are noted.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EBS in relation to earlier this year.