NEPH - Nephros is up as B Riley inititates coverage with a Buy

Nephros (NEPH) more than doubled over the past five-year period, outperforming XLV, the Health Care Select Sect SPDR ETF.However, that has not deterred B Riley Securities to initiate the coverage on the stock with a buy rating.Based on a 6.5x of FY22E EV/sales multiple, the price target at $12.50 per share implies another ~58.0% to yesterday’s close. Nephros is trading ~6.2% higher today.The analyst, Marc Wiesenberger, expects ‘NEPH to return to its growth trajectory and believe the shares will rerate higher’ as the environment normalizes.Amid the impact of the pandemic, Nephros has witnessed its top line for the past 12-month period ending Q3 2020, contracting ~9.4% YoY from a ~90.0% YoY growth in 2019.Based on preliminary financial results for Q4 2020, however, the company revenue has made a sequential growth for the second consecutive quarter, which the Nephros CEO, Andy Astor, hope will continue into 2021.

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Nephros is up as B Riley inititates coverage with a Buy