In a report released today, Joseph Pantginis from H.C. Wainwright maintained a Buy rating on Avid Bioservices Inc (NASDAQ: CDMO), with a price target of $11. The company’s shares closed yesterday at $7.17, close to its 52-week high of $7.48.
Pantginis commented:
“Valuation and impediments to achieving price target. We maintain our Buy rating and are increasing our price target to $11 from $6. Our valuation is based on a discounted EBITDA model, which we believe takes into account both the established and anticipated revenue growth of Avid, which is the cornerstone of the company’s business. We assign a 23x multiple on F2023 EBIDTA discounted back at Avid’s WACC of 13%. We believe that Avid deserves a multiple premium compared to recent CDMO deals in North America, which were based on M&A transactions of mature business.”
According to TipRanks.com, Pantginis has currently no stars on a ranking scale of 0-5 stars, with an average return of -8.8% and a 35.4% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Applied Genetic Technologies, and Iovance Biotherapeutics Inc.
Avid Bioservices Inc has an analyst consensus of Moderate Buy, with a price target consensus of $10.50.
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The company has a one-year high of $7.48 and a one-year low of $2.24. Currently, Avid Bioservices Inc has an average volume of 665.2K.
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Avid Bioservices, Inc. engages in the commercial manufacturing focused on biopharmaceutical products derived from mammalian cell culture for culture for biotechnology and pharmaceutical companies. It specializes in clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory submissions, and support.
