EBS - Emergent jumps 13% as Benchmark upgrades with over 100% upside
2023-04-10 11:17:49 ET
- Shares of Emergent BioSolutions ( NYSE: EBS ) rose ~13% in the morning hours Monday after Benchmark upgraded the contract manufacturer to Buy from Hold with a $22 per share target to imply over 100% upside to Thursday’s close.
- As reasons for the upgrade, the analyst Robert Wasserman noted a decline in EBS shares ahead of the recent FDA approval of the company’s Narcan nasal spray as an over-the-counter (OTC) medication for opioid overdose.
- “Public awareness and acceptance of the OTC version has picked up steam recently, with a number of advocacy groups and public health agencies applauding the move in press releases and public interviews,” Wasserman wrote.
- Arguing that Emergent ( EBS ) is valued at only 0.5x of the company’s 2023E revenue at current levels, the analyst sets its valuation multiple to imply 1.0x of the revenue projection.
- Read: Seeking Alpha analyst Singular Research issued a Buy rating on EBS in February ahead of the FDA approval.
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Emergent jumps 13% as Benchmark upgrades with over 100% upside