UPDATE: JMP Securities Initiates Coverage on Foundation Medicine on Clear First-Mover Advantage

Loading...
Loading...
In a report published Wednesday, JMP Securities analyst J.T. Haresco initiated coverage on
Foundation MedicineFMI
with a Market Outperform rating and $33.00 price target. In the report, JMP Securities noted, “We are initiating coverage on Foundation Medicine (FMI) with a Market Outperform rating and $33 price target. The company's FoundationOne test is currently the only commercially available pan-cancer panel that delivers concise, comprehensive, actionable, and patient-specific treatment options. The company has a clear first-mover advantage, and while there is uncertainty around the timing of reimbursement and the sustainability of pricing, we believe the company can maintain its position even in the face of increased competition in the space. Our $33 price target implies a 2015 EV/Sales multiple of 11.8x, representing an 18% premium relative to its same peer group. FMI is also being valued as a biotech company and we think it reasonable that our price target reflects an enterprise value (using projected levels of debt and cash) that is ~13x our revenue estimate for the twelve months ended September 2015, a multiple that is in line with the peer group median.” Foundation Medicine closed on Tuesday at $23.12.
Posted In: Analyst ColorInitiationAnalyst RatingsJ.T. HarescoJMP Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...