Global Hunter Securities Starts Pluristem Therapeutics (PSTI) at Speculative Buy

Global Hunter Securities initiates coverage on Pluristem Therapeutics (NASDAQ: PSTI) with a Speculative Buy. PT $5.00.

Global analyst said, "We believe Pluristem’s technology has the potential to produce high-quality, novel cell-based therapies that are ready to use, scalable, and have broad cost-effective applicability in multiple disease indications. Allogeneic donor products, such as the company’s Placental eXpanded (PLX) cells, are amenable to bulk manufacturing and therefore have potential for use “off the shelf.” Pluristem last month announced long-term follow-up results from Phase I studies with PLX-PAD cells, which showed a positive trend in treating peripheral artery disease (PAD). With positive feedback from the FDA and EMA, we believe the company is positioned to initiate Phase II studies in 2012. We believe Pluristem’s innovative approach to cell therapy biomanufacturing has advanced the viability of cell-based therapies as a commercial product, which we anticipate will continue to garner significant interest in 2012. Based on a sensitivity analysis of discounted P/E multiples, we assigned a 25x P/E multiple to projected 2015 earnings per share of $0.97, discounted annually by 35%, and derived a fair value estimate for PSTI shares of $5.

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

Shares of Pluristem Therapeutics closed at $2.48 yesterday.

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