Cerus (CERS) PT Lowered to $3 at Stifel

Stifel analyst Mathew Blackman lowered the price target on Cerus (NASDAQ: CERS) to $3.00 (from $6.00) while maintaining a Buy rating.

The analyst commented: "After the close, CERS announced that EU INTERCEPT Red Blood Cells (RBC) review had concluded without an approval, citing the need for additional data. CERS remains confident in the INTERCEPT program’s viability and will likely seek approval via a new submission. However, the pathway is unclear and the timelines are likely pushed-out by 1+ years. There’s no denying this is a disappointing update, with EU RBCs the next visible, potential growth accelerant. However, while we would expect the shares to trade-off on this news, at current valuation levels, we believe the roughly $1.00/share value we ascribe for the EU RBC program is already discounted in the price. We also remove $1.00/share value for the US RBC program, reflecting an increased risk profile. We end up at a $3 target price (from $6), also contemplating a lower base business multiple; however, we remain Buy rated, underscoring our belief that there is more value here."

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