H.C. Wainwright analyst Ram Selvaraju initiated coverage with a Buy rating on Oragenics Inc (OGEN) today and set a price target of $2. The company’s shares closed yesterday at $0.48, close to its 52-week low of $0.38.
Selvaraju said:
“Valuation methodology and risks. Oragenics is not yet generating revenue. We use an enterprise value analysis driven by a discounted cash flow (DCF)-based approach to value Oragenics shares. Our price target is derived from a market value of the firm at $88M, which includes an asset value for 18% discount rate and 2% terminal growth rate, excluding debt. Probability of success assigned is 50%, considering the positive Phase 1b data and the interim safety analysis. This translates into a price per share of $2, assuming approximately 46M shares outstanding at the end of 1Q20.”
According to TipRanks.com, Selvaraju is a 1-star analyst with an average return of -0.2% and a 32.7% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Oragenics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $2.
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The company has a one-year high of $3.74 and a one-year low of $0.38. Currently, Oragenics Inc has an average volume of 1.35M.
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Oragenics, Inc. is a biopharmaceutical company, which focuses on the development of novel antibiotics and treatments against infectious disease and oral mucositis. Its technology and pipeline is comprised of lantibiotics and genetically engineered bacterial strains.
