H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Acer Therapeutics Inc (ACER) today and set a price target of $55. The company’s shares closed yesterday at $25.61.
Selvaraju observed:
“Valuation methodology and risks. We value Acer using a composite risk-adjusted net present value (rNPV) approach, which employs a 15% discount rate and 30% tax rate across all future cash flows, while ascribing an 85% probability of success to EDSIVO and a 60% and 50% probability of success to ACER-001 in urea cycle disorders (UCDs) and maple syrup urine disease (MSUD), respectively. This yields a total rNPV of $720M, with $430M coming from EDSIVO and $290M from ACER-001.”
According to TipRanks.com, Selvaraju is a 1-star analyst with an average return of 0.0% and a 37.3% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Acer Therapeutics Inc with a $47.50 average price target.
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Based on Acer Therapeutics Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $8.5 million. In comparison, last year the company had a GAAP net loss of $3.98 million.
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Acer Therapeutics, Inc. is a pharmaceutical company, which engages in the acquisition, development, and commercialization of therapies for medical needs. Its product pipeline includes Edsivo and ACER-001. The Edsivo is a type of celiprolol for Vascular Ehlers-Danlos syndrome.
