Cerecor Inc (CERC) Gets a Buy Rating from H.C. Wainwright


H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Cerecor Inc (CERC) today and set a price target of $11. The company’s shares closed on Friday at $4.97.

Selvaraju wrote:

“We value Cerecor based on a discounted cash flow (DCF) approach that yields a total value of $530M, or a price objective of $11.00 per share, based on our projection of 47.3M shares outstanding as of end-1Q 2020. We utilize a 13% discount rate, along with an effective tax rate of 29.7%.”

According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -2.5% and a 30.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

Currently, the analyst consensus on Cerecor Inc is a Strong Buy with an average price target of $9.67, representing a 94.6% upside. In a report issued on July 1, Maxim Group also maintained a Buy rating on the stock with a $10 price target.

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Based on Cerecor Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $7.45 million. In comparison, last year the company had a GAAP net loss of $6.01 million.

Based on the recent corporate insider activity of 41 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 CERC 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.

Cerecor, Inc. is a clinical stage biopharmaceutical company focuses in medical development. It involves in the discovery, manufacture and commercialization of prescription for neurological and psychiatric disorders. It products include CERC-301, CERC-501, CERC-611, and CERC-406.

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