Auriga Starts 3SBio (SSRX) at Hold; High Growth Biotech Company in China, But Fairly Valued

Auriga initiates coverage on 3SBio (NASDAQ: SSRX) with a Hold. PT $13.00.

Auriga analyst says, "The company is positioned to ride on the 20-30% YOY growth in the Chinese pharmaceutical market. Since its IPO in 2007, the company has delivered 20-30% annualized growth in both revenue and EPS. 3SBio has a strong management and a pristine balance sheet. However, so far we have not seen the leveraged growth in EPS to materialize since increased revenue is offset by increased SG&A. We are also perplexed by the latest formation of a bio-venture fund by the company. At its current share price level, we feel the shares are properly valued."

For more ratings news on 3SBio click here and for the rating history of 3SBio click here.

Shares of 3SBio closed at $12.63 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• B.Riley Resumes Outbrain Inc (OB) at Neutral
• RBC Capital Upgrades Galp Energia SGPS SA (GALP:LI) (GLPEF) to Outperform
• Cantor Fitzgerald Starts Materialise NV (MTLS) at Overweight, 'Well-Positioned to meet rising software demand'