After B.Riley FBR and Jefferies gave Spectrum Pharmaceuticals (NASDAQ: SPPI) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Edward White maintained a Buy rating on Spectrum Pharmaceuticals today and set a price target of $40. The company’s shares opened today at $21.08.
“Our $40 price target is derived from a sum-of-the-parts analysis based on the P/E value of Spectrum’s current commercial business, plus an NPV of its proprietary pipeline. We value the current commercial business at $1.90 per share, the pipeline at $12.24 per share, and YE18 estimated fully diluted net cash of $1.65 per share. The commercial business value is based on a P/E multiple assumption of 17x our 2020E EPS of $0.13, discounted at 15%. We assume a 20% discount rate for the NPV of the pipeline and a P/S multiple of 3x.”
According to TipRanks.com, White is a 5-star analyst with an average return of 25.0% and a 55.6% success rate. White covers the Healthcare sector, focusing on stocks such as Syndax Pharmaceuticals Inc, Synthetic Biologics Inc, and Karyopharm Therapeutics.
Currently, the analyst consensus on Spectrum Pharmaceuticals is a Strong Buy with an average price target of $34.75, which is a 64.8% upside from current levels. In a report issued on August 31, B.Riley FBR also maintained a Buy rating on the stock with a $36 price target.
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Based on Spectrum Pharmaceuticals’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $13.74 million. In comparison, last year the company had a GAAP net loss of $20.47 million.
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Spectrum Pharmaceuticals, Inc. is a biotechnology company, which engages in the acquisition, development, and commercialization of pipeline of late-stage clinical and commercial products. It operates through the following brands: FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA. The company was founded in December 1987 and is headquartered in Henderson, NV.