“Valuation and risks to achievement of target price. Our price target of $22/share is based on an equally weighted composite of: (a) $22/share, as a 30x multiple of taxed and diluted $5.47 discounted back to FY18 at 25% (in line with the expected PE multiple and discount rate of an early development stage biotechnology company); and (b) an NPV of $22/share (discounted cash flow analysis using a 14% discount rate and 2% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”,” HC Wainwright’s analyst wrote.
Other analysts have also recently issued research reports about the stock. Roth Capital began coverage on shares of Savara in a research note on Monday, August 13th. They issued a neutral rating and a $12.00 target price for the company. Canaccord Genuity set a $25.00 target price on shares of Savara and gave the stock a buy rating in a research note on Tuesday, August 14th. Zacks Investment Research upgraded shares of Savara from a sell rating to a hold rating in a research note on Thursday, July 26th. Finally, BidaskClub cut shares of Savara from a buy rating to a hold rating in a research note on Wednesday, August 15th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and four have given a buy rating to the company. Savara has an average rating of Hold and an average target price of $26.80.
Savara (NASDAQ:SVRA) last released its earnings results on Wednesday, November 7th. The company reported ($0.37) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.34) by ($0.03). Sell-side analysts expect that Savara will post -1.41 EPS for the current fiscal year.
In other news, CFO David L. Lowrance sold 18,480 shares of the firm’s stock in a transaction on Thursday, November 1st. The shares were sold at an average price of $9.22, for a total value of $170,385.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 6.10% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in SVRA. Metropolitan Life Insurance Co. NY acquired a new stake in shares of Savara in the second quarter valued at about $104,000. Alliancebernstein L.P. acquired a new stake in shares of Savara in the third quarter valued at about $118,000. UBS Group AG lifted its stake in shares of Savara by 1,012.8% in the first quarter. UBS Group AG now owns 14,556 shares of the company’s stock valued at $133,000 after purchasing an additional 13,248 shares during the period. MetLife Investment Advisors LLC acquired a new stake in shares of Savara in the second quarter valued at about $148,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Savara in the third quarter valued at about $198,000. Hedge funds and other institutional investors own 41.84% of the company’s stock.
Savara Company Profile
Savara Inc, formerly Mast Therapeutics, Inc, is a clinical-stage pharmaceutical company. The Company is focused on the development and commercialization of novel therapies for the treatment of patients with rare respiratory diseases. Its pipeline includes AeroVanc, Molgradex and AIR001. AeroVanc is an inhaled formulation of vancomycin, which the Company is developing for the treatment of persistent methicillin-resistant Staphylococcus aureus, lung infection in cystic fibrosis patients.
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