Dawson James Reiterates Buy Rating, $16 Price Target on CytoSorbents (CTSO)

Dawson James analyst Jason Kolbert reiterated a Buy rating and $16.00 price target on CytoSorbents (NASDAQ: CTSO)

The analyst comments: "CytoSorbents reported 1Q22 results with $8.7M in revenues translating into a loss of about the same amount ($8.9M), but stay focused not on the current revenues but on the potential for the company to get CytoSorb approved and commercialized in the U.S. The company closed the period with $44.7M in cash.

We use a series of therapeutic models across the various indications and geographies and project product revenues for the Company out to the year 2030. In our U.S. therapeutic models, we apply a 30% risk cut (70% success probability) that both U.S. approvals and our market share forecasts can be realized. For us, valuation becomes an interesting question when we discuss the appropriate "r" risk-rate to use in our three-model metrics, free cash flow to the Firm (FCFF), Discounted EPS, and Sum-Of-The-Parts (SOP) models, which are equal-weighted, averaged, and rounded to the nearest whole number. Typically for early-stage companies with no revenues, we use 30%, and for companies with established products and revenues, we use a lower 15%. CytoSorbents arguably is somewhere in the middle, as products are approved and selling in Europe but not yet in the U.S. If we select a conservative 30%, we derive a $9.00 price target. If we choose a more aggressive 15%, we arrive at a $26.00 target. We select 25% to balance risk versus reward to derive a $16.00 target."

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

Shares of CytoSorbents closed at $2.18 yesterday.

By Vlad Schepkov

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