Alpha BioPharma Initiates Buy On Achillion; Sees 56% Upside


In a research report released today, Alpha BioPharma’s Paul Nunzio DeSantis initiated coverage on shares of Achillion Pharmaceuticals (NASDAQ:ACHN) with a Buy rating and $16 price target, which represents a potential upside of 56% from where the stock is currently trading.

DeSantis wrote, “We highlight ACHN as a top trade idea with our $34 DCF takeover valuation (model in subsequent sections) and $16 SOTP price target as a standalone entity that is solely positioned to take advantage of the inevitable shift taking place in the HCV market. This creates a compelling risk/reward (-50% downside, but potentially >300% upside) setup for 4Q14 into year-end, if data is positive we expect a takeover bid within 3 months of data release.” The analyst added, “We believe ACHN-3422, the sole clinical stage Nuc represents significant scarcity value and upon favorable data a competitive bidding process will be initiated. In subsequent sections, we build the case for a $27-$34 ACHN acquisition dependent upon the strength of data to be presented in by December 20th.”

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