In a report released today, Ram Selvaraju from H.C. Wainwright initiated coverage with a Buy rating on Kezar Life Sciences Inc (KZR) and a price target of $15. The company’s shares closed on Friday at $5.71, close to its 52-week low of $5.50.
Selvaraju observed:
“We have valued Kezar Life Sciences using a discounted cash flow (DCF)-driven approach, which yields a projected total firm value of $294M in mid-2020. Our DCF assessment utilizes a 14% discount rate, 2% terminal growth rate and roughly 30% effective tax rate. This translates into a price per share of $15, assuming approximately 19M fully-diluted shares outstanding as of mid-2020. Investors should note that we do not factor ex-U.S. revenues into our assumptions.”
According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -5.1% and a 29.9% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Taro Pharmaceutical Industries Ltd., Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
Kezar Life Sciences Inc has an analyst consensus of Moderate Buy.
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Based on Kezar Life Sciences Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $7.64 million. In comparison, last year the company had a GAAP net loss of $6.78 million.
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Kezar Life Sciences, Inc. is a clinical-stage biotechnology company, which discovers and develops novel small molecule therapeutics to treat autoimmunity and cancer. The firm specializes in the areas of protein degradation and protein secretion to discover & develop novel therapies for the treatment of serious and unmet medical needs.
