Cantor analyst Bryan Brokmeier reiterated a Buy rating on shares of Cerus Corporation (NASDAQ:CERS), with a $9.00 price target, after the FDA announced that it is requesting that all blood centers in Miami-Dade County and Broward County effectively stop collecting blood immediately, as health officials determine whether Zika has begun transmission in the continental United States. As a reminder, the FDA has approved a pathogen inactivation technology made by Cerus that kills the virus in blood platelets and plasma.
Brokmeier stated, “We recommend that Investors BUY shares of CERS following last night’s announcement by the FDA recommending that blood centers in two high-risk counties cease blood collections until blood testing or pathogen inactivation technology is implemented. The announcement by the FDA is a greater regulatory move than we had anticipated and further highlights the opportunity for CERS, which offers the only FDA approved pathogen inactivation technology. The recommendation may cause blood centers to accelerate their planned adoption of INTERCEPT for platelets, as well as those hesitant to adopt for plasma due to the marginal economic benefit for INTERCEPT-treated plasma. We estimate that an outbreak in Zika may pull forward $26.2M of plasma revenue and $29.7M of platelet revenue into 2017, or sooner.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bryan Brokmeier has a yearly average return of 2.9% and a 53% success rate. Brokmeier has a 5.8% average return when recommending CERS, and is ranked #1164 out of 4087 analysts.
Out of the 7 analysts polled by TipRanks, 6 rate Cerus stock a Buy, while 1 rates the stock a Hold. With a return potential of 16%, the stock’s consensus target price stands at $8.58.