H.C. Wainwright Thinks Chimerix’s Stock is Going to Recover

H.C. Wainwright analyst Edward White maintained a Buy rating on Chimerix (NASDAQ: CMRX) today and set a price target of $10. The company’s shares closed yesterday at $3.75, close to its 52-week low of $3.74.

White said:

“We base our $10 price target on probability-adjusted revenue forecasts for brincidofovir in AdV, smallpox and multiviral prevention. We use the net present value of our revenue forecast through 2026, apply a 15% POS for brincidofovir in AdV and other viruses, a 35% POS for brincidofovir in smallpox, a 4x price/sales multiple, value the early stage pipeline at $1.56/share and 2Q18 fully diluted net cash of $4.08/share to arrive at our $10 price target. Our P/S multiple of 4x is in line with Chimerix’s peers that range between 2-5x.”

According to TipRanks.com, White is a 5-star analyst with an average return of 24.9% and a 54.6% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Spectrum Pharmaceuticals, and Synthetic Biologics Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Chimerix with a $8 average price target.

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Based on Chimerix’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $18.61 million. In comparison, last year the company had a GAAP net loss of $16.68 million.

Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CMRX in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Chimerix, Inc. is a biopharmaceutical company, which engages in the research, development, and commercialization of pharmaceutical products. Its portfolio includes Brincidofovir for the treatment of adenovirus, cytomegalovirus, and smallpox.