H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Veru Inc (NASDAQ: VERU) today and set a price target of $5. The company’s shares closed yesterday at $1.95.
Selvaraju observed:
“Valuation methodology. Our price target is derived from a market value of the firm at $302M, which includes a discounted cash flow-based asset value of $313M for DRS, excluding $10.7M debt and using a 15% discount rate, 0% terminal growth rate and 60% probability of success for Tamsulosin DRS. Risks include, but are not limited to: (1) failure of FC2 or Tamsulosin DRS to achieve commercial success due to reimbursement, penetration rate, and/or competition; (2) failure of Tamsulosin DRS in clinical trials; and (3) failure of other pipeline candidates.”
According to TipRanks.com, Selvaraju is a 1-star analyst with an average return of -1.5% and a 40.1% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Veru Inc with a $7.50 average price target, which is a 284.6% upside from current levels. In a report issued on August 14, Maxim Group also maintained a Buy rating on the stock with a $10 price target.
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Based on Veru Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $7.93 million. In comparison, last year the company had a GAAP net loss of $789.9K.
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Veru, Inc. is a urology and oncology biopharmaceutical company, which engages in the development, manufacture, and marketing of consumer health care products. It operates through the Commercial; and Research and Development segments.
