In a report released yesterday, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Alimera (ALIM), with a price target of $3. The company’s shares closed yesterday at $0.93.
Selvaraju said:
“Our price target is derived from an estimated market value of the firm at $202M. This includes a discounted cash flow based enterprise value of the firm at $272M, excluding $40M debt and $30M preferred stock. The DCF analysis utilizes a 15% discount rate and a 2% terminal growth rate. Risks include, but are not limited to: (1) failure of ILUVIEN to secure additional regulatory approval; (2) failure of ILUVIEN to achieve commercial success due to market size, penetration rate, and/ or competition; and (3) potential dilution risk.”
According to TipRanks.com, Selvaraju is a 1-star analyst with an average return of -0.5% and a 33.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alimera with a $3.03 average price target, which is a 225.7% upside from current levels. In a report issued on April 30, B.Riley FBR also maintained a Buy rating on the stock with a $3.05 price target.
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The company has a one-year high of $1.21 and a one-year low of $0.72. Currently, Alimera has an average volume of 122K.
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Alimera Sciences, Inc. engages in the research and development of biopharmaceutical products. It operates through the U.S. and International geographic segments. The firm focuses on the development of ophthalmic pharmaceuticals for the treatment of diabetic macular edema, wet and dry age-related macular degeneration, and retinal vein occlusion.
