Wedbush Reiterates an 'Outperform' on Emergent BioSolutions (EBS); 5 Year, 44.75 Million Doses, $1.25 Billion BioThrax Contract
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Price: $4.59 +2.23%
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush reiterates an 'Outperform' on Emergent BioSolutions (NYSE: EBS) price target lowered from $37 to $31.
Wedbush analyst says, "EBS announced that the company has received an award to supply the US government with up to 44.75 million doses of BioThrax over 5 years and valued at $1.25 billion...EBS is guiding to sales of 8.5 million doses in 2012. We’re adjusting our estimates to take into account more conservative volumes and the discounted pricing in the contract’s front end, with 2012 BioThrax revenues now $232.4 million (8.9M doses) from $278.5 million (9.8M doses) leading to 2012 EPS of $0.90 from $1.65."
"We project average annual BioThrax revenues over the coming 5 years contract of $260 million (from $280 million) yielding estimated annual profits of approximately of $78 million (taxed, from $84 million) valued at a 12.1x multiple, worth ~$25/share, plus $4.00/share net cash (Q4:12) and $2/share for Trubion’s technology value."
For more ratings news on Emergent BioSolutions click here and for the rating history of Emergent BioSolutions click here.
Shares of Emergent BioSolutions closed at $17.13 yesterday.
Wedbush analyst says, "EBS announced that the company has received an award to supply the US government with up to 44.75 million doses of BioThrax over 5 years and valued at $1.25 billion...EBS is guiding to sales of 8.5 million doses in 2012. We’re adjusting our estimates to take into account more conservative volumes and the discounted pricing in the contract’s front end, with 2012 BioThrax revenues now $232.4 million (8.9M doses) from $278.5 million (9.8M doses) leading to 2012 EPS of $0.90 from $1.65."
"We project average annual BioThrax revenues over the coming 5 years contract of $260 million (from $280 million) yielding estimated annual profits of approximately of $78 million (taxed, from $84 million) valued at a 12.1x multiple, worth ~$25/share, plus $4.00/share net cash (Q4:12) and $2/share for Trubion’s technology value."
For more ratings news on Emergent BioSolutions click here and for the rating history of Emergent BioSolutions click here.
Shares of Emergent BioSolutions closed at $17.13 yesterday.
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