In a report released today, Joseph Pantginis from H.C. Wainwright maintained a Buy rating on Avid Bioservices Inc (NASDAQ: CDMO), with a price target of $6. The company’s shares opened today at $4.80.
Pantginis noted:
“Valuation and impediments to achieving price target. We maintain our Buy rating and are increasing our price target to $6 from $5. Our valuation is based on a discounted EBITDA model, which we believe takes into account both the established and anticipated revenue growth of Avid, which is the cornerstone of the company’s business. We assign a 15x (up from 13x) multiple on F2023 EBITDA discounted back at Avid’s WACC of 13%. Our 15x multiple is based on recent CDMO deals in North America, which ranged from 10-15x for EV/LTM EBITDA.”
According to TipRanks.com, Pantginis has currently no stars on a ranking scale of 0-5 stars, with an average return of -11.8% and a 33.1% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Applied Genetic Technologies, and Iovance Biotherapeutics Inc.
Currently, the analyst consensus on Avid Bioservices Inc is a Moderate Buy with an average price target of $8.
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Based on Avid Bioservices Inc’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $3.02 million. In comparison, last year the company had a GAAP net loss of $5.27 million.
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Avid Bioservices, Inc. is a biopharmaceutical company that engages in the provision of monoclonal antibody therapeutics. It operates through Peregrine and Avid segments. The Peregrine segment refers to research and development of monoclonal antibodies for the treatment and diagnosis of cancer.
