J.P.Morgan’s View on Emergent BioSolutions Inc. (NYSE: EBS)

J.P.Morgan maintains their Overweight rating for Emergent BioSolutions Inc. (NYSE: EBS) and price target set to $27 after EBS provided an optimistic business outlook.

Emergent reported that a contract for rPA over $500 million is possible by YE09. Moreover, the ongoing optimization of BioThrax franchise will prove to be a long-term value driver for the company. BioThrax is worth $14 per share. However, if the government provides support to Emergent, then it will increase the longetivity of BioThrax franchise.

Shares of EBS gained 1.44% to $14.78 in the morning trading hours. The 52 week trading range for EBS is $9.15 - $27.00.