UPDATE: Brean Murray Carret Initiates Buy, $30 PT on Ventrus Biosciences Ahead of VEN 309 Clinical Results
Brean Murray Carret initiates its coverage on Ventrus Biosciences (NASDAQ: VTUS) with a Buy rating and a price target of $30.
Brean Murray Carret comments, "We are initiating coverage of Ventrus Biosciences Inc. with a Buy rating, as we believe that VEN 309 has blockbuster potential, given its proven efficacy, large target market and the lack of competitive prescription hemorrhoid drugs. Our Buy rating and 12‐month target price of $30 are based on a DCF analysis using a 40% discount rate and a 6x multiple of the terminal value for the projected 2022 EBITDA of $936 million. Ventrus is focused on developing drugs for gastrointestinal indications. The company's lead drug candidate, VEN 309, has completed several Phase 2 trials in patients with hemorrhoids, and within weeks, Phase 3 data will be released that we believe will support approval."
VTUS closed at $10.04 on Wednesday.
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