UPDATE: Aegis Capital Initiates Coverage on China Biologic Products with Buy Rating, $20 PT
In a report published Wednesday, Aegis Capital Corp. initiated coverage on China Biologic Products (NASDAQ: CBPO) with a Buy rating and $20.00 price target.
Aegis Capital noted, “We are initiating coverage on China Biologic Products (CBPO/NASDAQ) with a Buy rating and a 12-month price target of $20.00 per share. In our view, this company represents a sustainably profitable enterprise operating in an attractive niche of the Chinese healthcare market...We believe that the company currently trades at an unwarranted discount to many of its peers, particularly considering the fact that the plasma-derived products market is a growth area and given the fact that it is not an easy domain to enter. In our view, the firm could generate >$175mm in revenue in 2012 and over $200mm in revenue in 2013, which translates into net income of $62.8mm in 2012 and $66.6mm in 2013.”
China Biologic Products closed on Tuesday at $15.11.
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