In a report released today, Ram Selvaraju from H.C. Wainwright initiated coverage with a Buy rating on Cerecor Inc (CERC) and a price target of $11. The company’s shares closed on Friday at $5.84.
Selvaraju observed:
“We value Cerecor based on a discounted cash flow (DCF) approach that ascribes a total value of $527M to the company’s marketed product portfolio, neurology-focused assets and ultra-rare early-stage product candidate pipeline. This translates into a price objective of $11.00 per share, based on our projection of 46.7M shares outstanding as of end-2019. We utilize a 13% discount rate across the board, along with an effective tax rate of 29.7%.”
According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -4.9% and a 32.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
Cerecor Inc has an analyst consensus of Moderate Buy, with a price target consensus of $10.
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The company has a one-year high of $7.65 and a one-year low of $2.71. Currently, Cerecor Inc has an average volume of 127.5K.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CERC in relation to earlier this year.
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Cerecor, Inc. is a clinical stage biopharmaceutical company focuses in medical development. It involves in the discovery, manufacture and commercialization of prescription for neurological and psychiatric disorders. It products include CERC-301, CERC-501, CERC-611, and CERC-406.
