Wedbush Maintains OP Rating, $16 Fair Value On DCTH

Wedbush is maintaining its Outperform rating and fair value of $16 on shares of Delcath Systems, Inc.

. “Our $16 fair value is derived from 5x (historical multiple for a novel device product) our 2015 sales estimate ($~400 million), discounted back 5.75 years at 20% per year, and includes the effect of the exercise of the 3.8 million warrants outstanding and an increase in the share count by 5 million shares for a future potential financing,” Wedbush writes. “Upside to these expectations could come from more off label utilization than we are presently modeling.” Delcath Systems closed Monday at $7.18.