UPDATE: Wedbush Initiates Coverage on Achaogen with Neutral Rating, $9 PT on High Clinical Risk

In a report published Tuesday, Wedbush analyst Heather Behanna initiated coverage on

with a Neutral rating and $9.00 price target. In the report, Wedbush noted, “We are initiating coverage with a NEUTRAL rating and $9 price target. Our price target is achieved by applying a 5x multiple on plazomicin peak US sales of ~$225M and a 15x multiple on plazomicin peak royalty revenue from EU sales. We apply a discount rate of 35% due to what we perceive as a high degree of clinical risk for the program.” Achaogen closed on Tuesday at $10.41.