H.C. Wainwright analyst Andrew Fein maintained a Buy rating on MEI Pharma (MEIP) today and set a price target of $10. The company’s shares closed yesterday at $2.69.
Fein commented:
“Valuation and risks to achievement of target price. Our price target of $10/share is based on an equally-weighted composite of: (a) $10.5/share, as a 25x multiple of taxed and diluted $4.5 discounted back to FY19 at 30% (in line with the expected PE multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $9.5/share (discounted cash flow analysis using a 20% discount rate and 2.0% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”
According to TipRanks.com, Fein is a 4-star analyst with an average return of 5.6% and a 43.0% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.
Currently, the analyst consensus on MEI Pharma is a Moderate Buy with an average price target of $8.75.
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The company has a one-year high of $5.14 and a one-year low of $1.82. Currently, MEI Pharma has an average volume of 248.5K.
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MEI Pharma, Inc. engages in the clinical development of novel therapies for cancer. Its drug candidates includes Pracinostat, an oral HDAC inhibitor that is being developed in combination with azacitidine for the treatment of acute myeloid leukemia and myelodysplastic syndrome.
