UPDATE: Aegis Capital Initiates Coverage on China Cord Blood Corp. with Buy Rating, $5 PT

In a report published Wednesday, Aegis Capital Corp. initiated coverage on China Cord Blood Corp.

with a Buy rating and $5.00 price target. Aegis Capital noted, “We are initiating coverage on China Cord Blood Corp., a provider of umbilical cord blood collection and banking services in the People's Republic of China (PRC). In our view, this firm is a leader in the Chinese cord blood banking industry, and also possesses growth potential based on its interests in the cord blood banking sectors of certain other Asia-Pacific markets. We note that the company currently trades at roughly 1x book value, and closed the most recently reported quarter with over $210mm in cash. Thus, we consider China Cord Blood an attractive investment opportunity, targeting a potentially high-growth market with relatively low competitive landscape risk. We value the firm at a price of $5.00 per share, using a comparable-based universe that assumes a total firm value of roughly $300mm and 70mm shares outstanding as of the end of 2013.” China Cord Blood Corp. closed on Tuesday at $2.66.