In a report released today, Edward White from H.C. Wainwright maintained a Buy rating on ChemoCentryx (NASDAQ: CCXI), with a price target of $20. The company’s shares closed yesterday at $12.51.
White noted:
“We base our $20 price target on probability-adjusted revenue forecasts for avacopan in AAV and C3G. We use the net present value of our revenue forecast through 2028, apply a 30% probability of success (POS) for avacopan in AAV, a 25% POS for avacopan in C3G, a 3x price/sales multiple, and our estimated fully diluted year end 2018 net cash of $2.49/ share to arrive at our price target. Our P/S multiple of 3x is in-line with ChemoCentryx’s peers that range between 2-5x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 24.9% and a 54.6% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.
Currently, the analyst consensus on ChemoCentryx is a Moderate Buy with an average price target of $16.70.
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ChemoCentryx’s market cap is currently $629.4M and has a P/E ratio of 36.79. The company has a Price to Book ratio of 21.77.
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ChemoCentryx, Inc. is a biopharmaceutical company engages in the development and commercialization of medicines. It focuses on inflammatory disorders, autoimmune diseases, and cancer. Its drug candidates such as Avacopan and CCX140, selectively blocks a specific chemoattractant receptor, leaving the rest of the immune system intact.
