In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Acer Therapeutics Inc (ACER), with a price target of $10. The company’s shares closed yesterday at $2.99, close to its 52-week low of $2.57.
Selvaraju wrote:
“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, while ascribing a 60% and 50% probability of success to ACER-001 in MSUD and UCDs, respectively. This yields a total rNPV of $170M. Assuming about 16.4M fully-diluted shares outstanding as of end-1Q 2020, this translates into a price objective of $10.00 per share.”
According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -7.5% and a 29.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Acer Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $9.
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The company has a one-year high of $34.10 and a one-year low of $2.57. Currently, Acer Therapeutics Inc has an average volume of 310.5K.
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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.
