H.C. Wainwright analyst Ram Selvaraju initiated coverage with a Buy rating on Eton Pharmaceuticals Inc (ETON) today and set a price target of $15. The company’s shares closed on Friday at $8.14.
Selvaraju commented:
“We have valued Eton based on a discounted cash flow (DCF) assessment, driven by our projection of future sales and royalty-based revenue from three candidates in the company’s pipeline, namely EM-100, ET-202 and CT-100. Our valuation approach utilizes a 12% discount rate and 2% terminal growth rate, along with a 28% effective tax rate applied to future cash flows. We assign a 90% probability of regulatory approval to EM-100, an 85% probability of approval to ET-202, which have already been filed with the 80% probability of approval to ET-103.”
According to TipRanks.com, Selvaraju ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -5.0% and a 27.6% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Eton Pharmaceuticals Inc has an analyst consensus of Moderate Buy, with a price target consensus of $15.
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Based on Eton Pharmaceuticals Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $7.41 million. In comparison, last year the company had a GAAP net loss of $3.02 million.
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Eton Pharmaceuticals, Inc. engages in the development and commercialization of prescription drug products. Its portfolio consists of injectable, oral liquid, ophthalmic products pipelines. The company was founded in April 2017 and is headquartered in Deer Park, IL.
