UPDATE: Jefferies Reiterates Buy Rating, Raises PT on AcelRx Pharmaceuticals Following Model Assumption Updates

In a report published Tuesday, Jefferies analyst Corey Davis reiterated a Buy rating on AcelRx Pharmaceuticals ACRX, and raised the price target from $8.00 to $13.00. In the report, Jefferies noted, “We are making numerous model adjustments as we move closer to an NDA filing for ARX-01 (3Q'13). We raise initial pricing expectations, but temper uptake in the early years. We also increase our terminal value assumptions. Net, net, our peak utilization rate is unchanged (10%), our peak sales estimates in 2025 rise (to $478M from $398M), and our DCF now yields a $13 PT (prior $8). July 27th analyst day is the next catalyst.” AcelRx Pharmaceuticals closed on Monday at $9.63.