Jefferies Reiterates Buy Rating on Avanir Pharma (AVNR)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on shares of Avanir Pharmaceuticals AVNR; it has a $10.00 price target on the stock. The Jefferies analysts said that they believe management continues to have constructive back and forth rhetoric with the FDA and continue to expect approval for AVP-923 (formerly Zenvia) by October 29th. They added that there appears no be no barriers to the FDA approving AVP-923, as all items highlighted under the SPA were addressed and the cut-off for the notification date of the FDA panel has passed. As for valuation, the analysts remarked, “We arrive at our $10 PT by applying a 30x multiple to our 2013 EPS estimate of $0.78 and discounting back at 30% per annum.”