Maxim Updates PT on Aeterna Zentaris (AEZS) to $11; Maintains 'Buy' Rating

On Monday, Maxim updated its price target on Buy-rated Aeterna Zentaris (Nasdaq: AEZS) to $11 following a recent share consolidation aimed at regaining Nasdaq listing compliance (note was from 11/23).

Jason Kolbert noted the following:

• Management announced the clean-up of the company's capital structure, with the majority of outstanding warrants (multiple traunches) now eliminated. With a reverse split now effective, the company has approximately 6.6M shares outstanding. We do not have the final numbers yet, but the overhang from the warrants has for the most part been eliminated.
• Last week, management announced that the first patient has been enrolled for the confirmatory Phase III clinical study to demonstrate the efficacy of Macrilen for adult growth hormone deficiency (AGHD). This is a big deal, as it means the trial is now running. We believe Macrilen is a viable therapeutic/diagnostic that will be used in the AGHD marketplace and potentially in traumatic brain injury.

Kolbert also commented on valuation: We have updated our model for the new capital structure and share count and adjusted our assumptions for funding (capital raises). We combine (averaged and equal weighted) our FCFF, discounted EPS and sum-of-the-parts models, using a 30% (maximum discount rate) to project our new $11.00 price target, down from $200.

For an analyst ratings summary and ratings history on Æterna Zentaris click here. For more ratings news on Æterna Zentaris click here.

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